Release Date: April 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss the overall Las Vegas market conditions and what might be causing some of the market softness?
A: Keith E. Smith, President and CEO of Boyd Gaming, explained that the Las Vegas Locals market has been soft for a few months, with declines in the mid-single digits when adjusting for new competitors. The core customer segment is performing well with growth, but the retail customer segment, which is more economically sensitive, is showing softness likely due to cautious spending amidst economic changes.
Q: With the new Durango property open and promoting, at what point might Boyd Gaming consider adjusting its promotional strategies?
A: Keith E. Smith stated that while they think about promotions daily, they maintain strong discipline to avoid it. The major competitors have not increased promotions significantly, but smaller operators around specific properties have become more promotional, impacting the market. Boyd Gaming continues to monitor and test new programs without deviating from their disciplined reinvestment strategy.
Q: Can you clarify the impact of three key factors on the Las Vegas Locals market performance?
A: Keith E. Smith confirmed that tough comparisons to last year's record results, the new Durango property, and same-store softness each contributed approximately one-third to the EBITDA decline. He noted that the impact of Durango and market softness became more pronounced towards the end of the quarter.
Q: How is Boyd Gaming's core customer base performing, and what does this indicate about market trends?
A: Keith E. Smith highlighted that revenue from Boyd Gaming's core customer base continues to grow year-over-year, suggesting strong customer loyalty and engagement. This growth is stable, and while it's set against a backdrop of record previous year results, it indicates a solid customer foundation.
Q: What are the expectations for the new Treasure Chest Casino project, and will there be any disruptions during the transition?
A: Keith E. Smith described the project as a significant enhancement, moving from a riverboat to a land-based facility, which is expected to attract more customers and increase EBITDAR. Minor disruptions might occur, possibly requiring a few days of closure during midweek transitions, but no major interruptions are anticipated.
Q: How is the promotional environment in the Midwest & South segments, and have there been any notable changes?
A: Keith E. Smith reported stability in the promotional environment across the Midwest & South segments, with no significant changes or aggressive promotions from competitors. This stability supports a consistent operational approach in these markets.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.