Boyd Gaming Profits Dip as Las Vegas Destination Market Softens

The casino operator posted earnings of $1.71 per share, a sharp drop from the $17.81 reported in the same quarter last year, which had been bolstered by a $1.4 billion windfall from the sale of its FanDuel stake. Total revenue slipped to $990.5 million, missing the $1 billion threshold anticipated by analysts. Chief Executive Keith Smith attributed the weakness specifically to the Orleans property, noting that elevated airfares and storm activity in Hawaii deterred the company's traditional base of island visitors.

Contrasting the Las Vegas slump, the Midwest and South segment saw revenue tick up to $540.5 million. This growth persisted despite the closure of one venue and the sale of another, along with increased property tax burdens in Kansas. When adjusting for these divestments and operational changes, Boyd Gaming estimates that segment revenue would have climbed by 3%. Meanwhile, online operations also faced headwinds, with revenue contracting to $154.5 million from $165.6 million a year ago.