Boyd Gaming Corporation has reported its Q3 financial results for the trading period ended September 30, 2020, showing a decline in revenue and net income, but growth in EBITDAR and operating margins year-on-year.
In its update, the firm recorded Q3 2020 revenues of $652.2m ($819.6m 2019) while net income reached $38.1m ($39.4m 2019). Total adjusted EBITDAR increased by 12% to $238.8m ($213.5m 2019) and companywide operating margins were 36.6%, up significantly from 26.1% year-on-year.
During the third quarter of 2020, the company’s Las Vegas Locals segment reported revenues of $171.1m, a decline of 20% from prior year, while adjusted EBITDAR grew more than 23% to $78.9m and operating margins increased more than 1,600 basis points to 46.1%.
Midwest & South revenues fell 15% to $463.6m while adjusted EBITDAR increased nearly 17% to $182.5m, and operating margins rose approximately 1,100 basis points to 39.4%, as strong operating performances across the segment more than offset the impact of property closures related to Hurricanes Laura and Sally.
The company’s Downtown Las Vegas segment reported revenues of $17.5m, down 71% from prior year, and an adjusted EBITDAR loss of $1.5m, due to significant travel restrictions in Hawaii and overall declines in Las Vegas visitation.
As of September 30, 2020, Boyd Gaming had cash on hand of $506m, and total debt of $4.04bn. Cash and debt balances reflect the repayment of the company’s outstanding revolving credit facility borrowings during the third quarter.
Keith Smith, President and CEO, said: “During the third quarter, we successfully navigated the challenges presented by the COVID pandemic thanks to our outstanding operating team. By effectively yielding our casino floors and amenities while implementing new efficiencies throughout our business, we greatly enhanced our operating performance in a lower-revenue environment.
“At the same time, we continued to build the foundation for future growth through the expansion of our partnership with FanDuel Group, successfully launching mobile sports betting platforms in Illinois and Iowa and expanding our digital reach to more than 30 million adults nationwide. We are proud of our team’s ability to successfully execute our strategy and are committed to sustaining a more efficient and profitable operating model into the future.”