Even when all gaming analysts and casino owners see only the negative sides of the shaky gambling industry, it looks like the closure of the Atlantic-city based casinos has a beneficial aspect as well. The Borgata authorities didn’t waste their time at all and took a full advantage of the closures as well as the taxes imposed. Surprising or not, Boyd Gaming Group has reported a steady increase in the revenue of 5,5% in the third quarter of 2014.
Keith Smith, the CEO of Boyd Gaming Group, commented that the third quarter of the year can undoubtedly be described as a successful and profitable period for the company. Bearing in mind the decrease in the revenue for the previous quarter, the current increase is considered to be outstanding.
Company’s shares on the Stock Exchange in New York rose by 3,5% as soon as the authorities announced the impressive performance and the great step they made towards reducing their debt.
The net revenue was estimated to be almost $740 million; the sum of money, equivalent to the increase of 5,5% in EBITDA, was 8,4 million.
Smith also added that the wonderful results are not a pure coincidence or a stroke of luck. On the contrary – that’s the result from the hard work of all the Boyd Gaming Group experts. They have given their best to make the business thriving and competitive by reducing the expenses and improving the efficiency. What’s more, Smith said that he is really proud of the actions, taken towards reducing the debt load of the company.
They have successfully paid off a great part of the debt – approximately $70 million, which reduced the amount they owe to $165 million. According to Smith, the company has the capacity to hit the target of $200 million debt reduction by the end of the year.
Another accomplishment, Smith can take pride in, is the Atlantic City tax settlement, equal to more than $8 million. He didn’t miss to mention that the sales went up and the revenue of the slot machines and the hotel rooms occupancy raised by 4,7% anyway, which respectively means that the company doesn’t need anybody’s help in order to remain prosperous.
As far as the revenue of the Las Vegas- based venues is concerned, the increase is equal to $28 million. Such a positive tendency for a revenue growth has been observed for the last six months and Smith had no hesitations in confirming that the non-gaming affairs had a great positive impact on the revenue.
The increase of the revenue in Downtown is due to the improved tourism sector and the commonly visited Fremont Street region.
As mentioned above, Borgata authorities were quick to take advantage of the issues the Atlantic-city based casinos have and increased its shares on the market by 24%. Apart from the tax settlement, Smith also said that the revenue was increased because of the fact that the more casinos close, the more visited the hotel, spa facilities and casino venues, managed by Boyd Gaming Group are.
Currently, Boyd Gaming Group is responsible for the development of 22 venues, located in eight states. The expected revenue, generated by the end of the year, is said to be approximately $580 million.
