Boyd Gaming Corp.'s (BYD) second-quarter income fell 41% on
lower revenue and weakness in all its markets as revenue missed
expectations.
As one of the oldest Las Vegas gambling companies, Boyd's
customers include many locals, who are struggling with rapidly
declining home values and job losses. The company has indefinitely
delayed its $4 billion-plus Echelon Place project in Las Vegas, but
it has expressed interest in buying bankrupt Station Casinos Inc.
Chief Executive Keith Smith reiterated that interest on
Wednesday.
Results from other casino companies in the last week, including
Las Vegas Sands Corp. (LVS) and MGM Mirage (MGM), have generally
been dour, as MGM swung to a loss and Sands' loss widened as the
industry continues to suffer from sharp drops in revenue and
visitors.
Smith said although business conditions remained difficult in
all the company's regions, results were in line with its
expectations. Despite the economic uncertainty, the company
believes "the precipitous declines that began in the second half of
2008 are over, as we continue to see stabilization in our
business," he said.
Boyd, which jointly owns the Borgata in Atlantic City with MGM
Mirage, posted income of $12.8 million, or 15 cents a share, down
from $21.7 million, or 25 cents a share, a year earlier. The latest
results included a net 3 cents in gains, while the prior year's
included a net 5 cents in charges. Excluding items, earnings fell
to 12 cents from 30 cents.
Revenue decreased 8.2% to $423 million.
Analysts polled by Thomson Reuters expected earnings of 12 cents
and revenue of $432 million.
Gaming revenue fell 7.2% while room revenue declined 11%. At the
Borgata, earnings grew 22% on cost-control measurse despite a 6.6%
slide in revenue.
Boyd's shares closed Tuesday at $9.94 and haven't traded
premarket.
-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353;
kerry.benn@dowjones.com