Boyd Gaming Revenue Receives Boost From Kansas Star Casino

The Nevada based business Boyd Gaming Corporation, which operates 22 hotels and casinos across the US, recently announced a 16.4% increase in its Q1 revenue to $737 million, up from the $633.1 million taken in the same quarter last year.
Last year, Boyd added the Kansas Star Casino to its portfolio of gaming establishments, which was a particularly shrewd move considering the business generated a whopping $180 million in gambling revenue throughout 2012. This year’s results have been equally as impressive with the Kansas Star Casino earning $16.4 million in January, $17 million in February and $19 million in March.
Visitations to the casino are also expected to grow from late June onwards, after an additional 6,000 people seating area, at a cost of $9 million, is added to the premises. The casino is then expected to earn around $100 million each year before interest, taxes, depreciation and amortization.
Unsurprisingly, despite the business currently having the highest operating margins in the whole of Boyd Gaming Corporation, Kansas Star Casino’s margins have been affected by its recent expenditure, which also includes opening its permanent casino with new food and beverage amenities in December.
As the company’s CEO Paul Chakmak explains, margins “were impacted in the first quarter by higher expenses associated with these new amenities, as well as increased marketing expense. Marketing spend was unusually low during Kansas Star’s introductory period in early 2012, and this quarter’s results reflect more realistic customer reinvestment levels.”
As mentioned, Boyd Gaming Corporation operates 22 hotels and casinos, employing around 17,000 people across the USA. After releasing its latest Q1 results, shares in the company rose a massive 22% to $10.98, giving it a market capitalization of $953.85 million.