LAS VEGAS (KLAS) — With practically $1 billion in first-quarter revenues, Boyd Gaming is off to a powerful begin in 2025.
And firm leaders stated April is following swimsuit, regardless of the specter of tariffs.
“While economic uncertainty has increased in recent weeks, we are encouraged that trends in our business have remained consistent over the first three weeks of April,” Keith Smith, president and chief government officer, stated throughout Boyd’s earnings name on Thursday.
The on line casino firm’s Las Vegas resorts introduced in $280 million from January by March, about even with 2024 first-quarter totals. The Tremendous Bowl boosted enterprise final yr, and moved on to New Orleans this yr. Boyd’s 10 Las Vegas properties accounted for about 28% of the corporate’s enterprise, with regional casinos within the Midwest and South dominating the stability sheet.
That translated into $338 million in earnings — calculated by Boyd officers as EBITDAR, or earnings earlier than curiosity, taxes, depreciation, amortization and restructuring/lease.
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Officers broke floor on the Cadence Crossing on line casino on April 4, starting development on a mission that can ultimately substitute Joker’s Wild on Boulder Freeway. Cadence Crossing is anticipated to open in mid-2026.
“This property has been designed for continued growth with future plans for a hotel, additional casino space and more non-gaming amenities,” Smith stated.
Boyd can also be spending cash at The Orleans and the Suncoast. Property-wide renovations on the Suncoast have brought on solely minimal disruptions thus far, however that can enhance as summer time months arrive.
Downtown Las Vegas casinos additionally noticed improved income and earnings, Smith stated. A part of that needed to do with “normal” visitation from Hawaiian guests, who stayed away final yr because the Tremendous Bowl inflated airfares to Las Vegas, Smith stated.
Consistency in buyer spending was a theme Smith returned to typically throughout the name.
And, like different on line casino firms, Boyd continues to put money into itself, spending $328 million to purchase again inventory whereas paying $15 million in dividends. However Smith stated inventory repurchases would drop to $100 million per quarter going ahead.
Traders on the decision famous that firms nationwide are pulling again — and canceling in some circumstances — plans to spend cash constructing new tasks due to tariffs.
Josh Hirsberg, government vice chairman, CFO and treasurer, stated Boyd was evaluating prices and utilizing home items when potential.
Volatility hasn’t modified the corporate’s view, Smith stated.
“We have identified those areas that we will see cost increases or we expect to see cost increases because of either existing or possibly new tariffs,” Smith stated.
“But as we’ve calculated them and looked at our budgets, we’re comfortable that they’re not going to hinder our ability to go forward and that we can handle those increased costs whatever they may be within the budgets that we have. So it’s not going to cause us to change course,” he stated.
Smith stated the corporate’s view of the Eastside Cannery on Boulder Freeway, a hotel-casino that did not reopen after the pandemic, has not modified. He stated there wasn’t sufficient enterprise in that a part of city to assist one other on line casino right now.
And concerning the near-completion of the interchange at I-15 and Tropicana Avenue, Smith stated, “We’re hopeful that later this yr that that mission will form of end to a degree the place that interchange at Trop and the I-15 is cleared up.
“It’s not there yet,” Smith stated.
“It certainly has had an impact on business, mainly at The Orleans,” he stated.
