Boyd Gaming has seen the coronavirus pandemic have an unprecedented impact on first quarter revenues, two months after the US casino operator praised portfolio diversification after recorded increase across all key reporting segments.
After the company was forced to close all 29 properties nationwide under state and local orders aimed at mitigating the spread of COVID-19 during the March 12-18 period, Boyd asserts that all entities are to remain shutdown for the foreseeable future.
Revenue during the quarter dropped 17.7 per cent to $680.5m (2019: $827.3m), with the company reporting a net loss of $18.3m compared to net income of $45.5m in the preliminary report. Adjusted EBITDAR dropped 35.2 per cent for the period to $144.4m (2019: $223m).
“During these unprecedented times, our highest priority is the health and safety of our team members, customers and communities. We want to express our gratitude to our first responders and health care workers, who have put their own health and well-being at risk to protect us all,” explained Keith Smith, president and CEO of Boyd Gaming.
“We are fully supportive of the actions taken by state and local officials to help slow the spread of COVID-19, including the closure of our properties nationwide. We look forward to re-opening our properties ‒ following strict safety protocols that will meet or exceed the requirements set forth by health officials ‒ when state authorities determine it is appropriate to do so.
“Prior to the closure of all of our properties in mid-March, our company began the first quarter with a strong performance, posting two consecutive months of solid year-over-year growth across our nationwide operations. And while our first-quarter results were significantly impacted by property closures, we have taken broad-based actions to reduce expenses and preserve liquidity.
“As a result of these actions, and the progress we have made in recent years to strengthen our balance sheet, we believe our company is well-positioned to sustain itself through the closure period. We intend to emerge from these challenging times as a more efficient and operationally focused company.”
Across its key reporting segments Boyd saw revenue across ‘Las Vegas Locals’ drop 18.8 per cent to $180.8m (2019: $222.9m), ‘Downtown Las Vegas’ dipped 14.1 per cent to $54.1 (2019: $63m) and ‘Midwest and South’ declined 17.6 per cent to $445.6m (2019: $541.4m).
