July 24, 2025 – 4:23 pm
Boyd Gaming Corp. executives say they aren’t seeing any room rate slippage in their locals market properties that Strip properties are experiencing and are happy with the nearly 7 percent increase in revenue the company generated in the second quarter, beating Wall Street expectations.
The company on Thursday reported $150.4 million net income, $1.87 a share, on revenue of $1.034 billion for the quarter that ended June 30. The company posted net income of $139.8 million, $1.58 a share, on revenue of $967.5 million. Wall Street gaming industry analysts forecasted revenue of $980.9 million for the quarter.
The company also reported improved cash flow for the quarter.
For Boyd’s locals division, it was the strongest quarterly growth in more than two years.
“This performance was led by growth in play from our core customers as well as continued improvements in retail play,” Boyd CEO Keith Smith said in a conference call with investors Thursday. “Growth in play among our local guests more than offset softness in play for our out-of-town customers. While the Las Vegas Strip has recently seen softer demand trends, there are signs of continued strength in the local economy.”
Smith said Boyd has no intention of offering deeply discounted room rates.
“Summer room rates right now are lower than they were last year,” Smith said. “Summer room rates are always low compared to the other seasons. This year they’re lower than last year, in many cases by quite a bit. So I don’t know why people are doing that. Obviously, it does impact properties like the Orleans which has nearly 1,900 hotel rooms in terms of our ability. So we’re not offering $19 hotel rooms and we’re not going to offer $19 hotel rooms. But I don’t sit in (competitors’) boardrooms or their marketing meetings or their hotel meetings, so I actually can’t tell you (why others are discounting).”
While Boyd’s downtown Las Vegas revenue was down 11.9 percent to $19.4 million for the quarter, the company’s locals properties were up 3.2 percent to $112.7 million.
Smith said its downtown segment comparisons were challenged because the traditionally strong Hawaiian market Boyd dominates for its downtown properties was unusually high in the second quarter of 2024.
Smith said the locals performance was strong despite being weakened by construction disruption at the company’s Suncoast property. The property is in the midst of a renovation that won’t be completed until the first quarter of next year.
“We plan to start hotel renovations at the Orleans in the coming months,” Smith said. “In addition, our propertywide renovation of the Suncoast is continuing and is now in its most disruptive stage with large portions of the casino floor under renovation.”
Earlier Thursday, Boyd announced the grand opening of Suncoast’s new 9,170-square-foot bingo room on Aug. 2. Several promotional events for the new room are planned Aug. 2 and 3.
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on X.
