Boyd plans changes as revenue dips
CEO: Most local properties to open when shutdown is lifted
During the 2008 financial crisis, Strip properties were much quicker to recover than Las Vegas’ local casinos, with a wider pool of visitors and variety of incremental amenities like dining and entertainment options.
Boyd Gaming Corp. executives don’t expect to see similar results during the coronavirus pandemic.
Strip operators have discussed a phased reopening with certain properties and amenities shut weeks past the reopening date, but Boyd President and CEO Keith Smith said he sees most — if not all — of
Boyd’s local properties in Southern Nevada opening as soon as shutdown orders are lifted.
The strategy could be a major boon for the casino operator, which reported a substantial drop in revenue in the first quarter as it works to preserve liquidity amid nationwide casino shutdowns.
Boyd’s revenue dropped 18 percent to $680.5 million in the first quarter of 2020, compared to $827.3 million in the same period the previous year, according to preliminary results.
Smith believes the company is “well-positioned” to sustain itself through
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the closure period, and plans to emerge on the other side as a more efficient and operationally-focused company.
The casino operator has made a series of steps in recent weeks to mitigate the financial impact of the COVID-19 pandemic.
Most staff members have been placed on furlough, and company executives are set to take “significant salary reductions,” according to a statement released April 8. All members not furloughed at its corporate and property management teams are taking a salary cut, and Boyd’s board of directors has agreed to suspend its compensation.
Boyd’s 29 wholly owned gaming properties — 12 in Nevada — remain closed to the public. It’s not clear when Nevada will allow casinos to reopen, but Boyd is accepting reservations for its Las Vegas hotels beginning May 15.
Smith expects to see pent-up demand among the local segment, enough to allow Boyd to open most of its regional properties in Southern Nevada and other states as soon as they’re allowed.
“Each of the properties is in a very distinct part of (Las Vegas), and has a very distinct customer base,” he said.
The only outlier may be the company’s three downtown properties — Fremont Hotel, Main Street Station and California Hotel — since that area relies on visitors to the Fremont
Street Experience and the Hawaiian market, who may be more averse to traveling to Las Vegas during the pandemic.
Contact Bailey Schulz at bschulz@ reviewjournal.com or 702-383-0233. Follow @bailey_schulz on Twitter.