Boyd Gaming’s Non-Las Vegas Revenue Shines

The Short Take:

  • Boyd reports its revenue using three regional revenue segments: Las Vegas Locals, Downtown Las Vegas and Midwest & South
  • The Midwest & South segment had the most revenue in the third quarter of 2018, coming in at $344 million, accounting for 56.2% of the company’s total revenue
  • The Midwest & South segment also had the highest year-over-year growth of any segment, growing 6.5% compared to the same quarter last year

One way that Boyd Gaming (BYD) reports its revenue is by splitting it up into three regional segments: Downtown Las Vegas, Las Vegas Locals and Midwest & South (they also report based on revenue per operating segment, you can read about that by clicking here). We’ll look at how each region performed during the third quarter of 2018 in this article.

Boyd was built over decades on the patronage of Las Vegas locals with its off-strip and friendly casinos that offered a good value to the local Vegas population.  This segment includes properties such as Gold Coast and Sam’s Town.  Today, this market is still a huge one for the big publicly-traded company, to the tune of $208.7 million in revenue in the third quarter.  In terms of its total company-wide revenue, the local Las Vegas market accounts for 34.1% of the revenue, as of the third quarter of 2018.

Although the local Las Vegas market is what Boyd may be best known for, it is no longer the company’s largest regional segment.  The Midwest & South segment now accounts for 56.2% of the total revenue for Boyd.  Revenue from its Midwest & South casinos brought in $344.2 million during the third quarter. The Midwest & South segment has casinos in Illinois, Iowa, Indiana, Kansas, Louisiana and Mississippi.

The third and final regional segment for Boyd is Downtown Las Vegas.  This segment is made up of three casinos in the Downtown Las Vegas: the California, the Fremont and Main Street Station.  In the third quarter, this regional segment saw revenue of $59.1 million which equates to 9.7% of company-wide total revenue.

Here are two charts that illustrate the regional revenue segments for BYD.  The first one shows the total revenue per region and the second details each region’s contribution to total revenue.

 

During the third quarter, the Midwest & South region saw the strongest growth among all of the segments. Its year-over-year growth compared to the third quarter of 2017 hit 6.5%.  Boyd’s other two segment did not fare as well.  The Downtown Las Vegas segment squeaked to positive growth at 0.6% versus last year. The Las Vegas locals market saw a small drop of 0.4% in revenue for the quarter compared to 2017.

Here’s a visual of the year-over-year growth for Boyd’s three regional segments:

Although Boyd Gaming is steeped in the tradition of serving local Las Vegans, that is not either its biggest market or its fasted growing.  The Midwest & South, with casinos spread throughout the central part of the U.S., now dominates the company’s revenues.

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