CASINO

Newly acquired companies save the day for Boyd Gaming

TAGs: aliante casino, Boyd Gaming, cannery casino resorts, revenue

Property shopping has done a lot of good things for U.S. regional casino operator Boyd Gaming, especially in terms of revenue.

In a regulatory filing on Wednesday, Boyd posted record revenue of $2.38 billion in 2017, helped by its newly acquired properties Aliante, Cannery Casino, and Eastside Cannery.

Newly acquired companies save the day for Boyd GamingBoyd’s 2017 revenue was 8.4 percent higher than its 2016 figure of $2.18 billion. Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 11 percent to a record $595.6 million compared with $536.3 million in 2016.

The casino operator also capped 2017 on a high note, with its fourth quarter net revenue rising 6.5 percent year-on-year to $590.8 million.

Boyd President and Chief Executive Officer Keith Smith noted that the company’s Nevada operations “continued their long-term growth trajectory,” while its regional operations “showed further improvement.”

The 2017 result included the contributions from Aliante, which it acquired on September 27, 2016, as well as from Cannery and Eastside Cannery, which were both purchased on December 20, 2016.

The company said Aliante chalked up double-digit adjusted EBITDA for the fourth consecutive quarter, while Cannery and Eastside Cannery continued to grow at a double-digit pace compared to the twin properties’ 2016 standalone results.

Like rival MGM Resorts, Boyd’s net revenue also got a boost from Washington’s tax reforms. The company said that it raked in $60.1 million worth of noncash benefits due to the recent federal tax legislation.

In terms of segments, Boyd’s net revenue from Downtown Las Vegas casino operations climbed 3.9 percent to $64.4 million in the October to December 2017 period. Its Las Vegas Locals segment was up 14.7% to $217.6 million on continued growth visitation.

Boyd’s Midwest and South segment reported its strongest quarterly results due to refinements to operations, increasingly effective marketing, and healthy economic conditions.

The Midwest and South segment generated $308.8 million net revenues in 2017, a mild bump from the $307.2 million in Q4 2016.

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