LAS VEGAS (KLAS) — With practically $1 billion in first-quarter revenues, Boyd Gaming is off to a robust begin in 2025.
And firm leaders mentioned April is following go well with, 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 govt officer, mentioned throughout Boyd’s earnings name on Thursday.
The on line casino firm’s Las Vegas resorts introduced in $280 million from January via 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 steadiness 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 building on a venture that can finally substitute Joker’s Wild on Boulder Freeway. Cadence Crossing is predicted 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 mentioned.
Boyd can 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 improve as summer season months arrive.
Downtown Las Vegas casinos additionally noticed improved income and earnings, Smith mentioned. 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 mentioned.
Consistency in buyer spending was a theme Smith returned to typically throughout the name.
And, like different on line casino firms, Boyd continues to spend money on itself, spending $328 million to purchase again inventory whereas paying $15 million in dividends. However Smith mentioned 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 initiatives due to tariffs.
Josh Hirsberg, govt vice chairman, CFO and treasurer, mentioned Boyd was evaluating prices and utilizing home items when attainable.
Volatility hasn’t modified the corporate’s view, Smith mentioned.
“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 mentioned.
“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 mentioned.
Smith mentioned 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 mentioned there wasn’t sufficient enterprise in that a part of city to help one other on line casino at the moment.
And concerning the near-completion of the interchange at I-15 and Tropicana Avenue, Smith mentioned, “We’re hopeful that later this yr that that venture will type of end to some extent the place that interchange at Trop and the I-15 is cleared up.
“It’s not there yet,” Smith mentioned.
“It certainly has had an impact on business, mainly at The Orleans,” he mentioned.
