Cost-cutting helps boost Boyd returns

Thursday, Nov. 14, 2002 | 11:09 a.m.

Cost control measures, including cuts in marketing and payroll expenses, helped boost third-quarter returns at Las Vegas casinos owned by Boyd Gaming Corp.

Boyd's Stardust hotel-casino reported an operating loss of $400,000 for the third quarter ended Sept. 30 compared with an operating loss of $2.7 million for the third quarter of last year, primarily due to reductions in marketing and payroll costs, the company reported in a quarterly filing to the Securities and Exchange Commission.

Gaming revenues at the Stardust remained essentially unchanged during the period, while non-gaming revenues declined 11 percent, mainly due to lower business volumes, the company said.

At Boyd's Boulder Strip casinos, operating income jumped by $2.4 million, principally due to cost containment programs. Gaming revenues decreased by 3.1 percent due to declines in slot and table game wagers, while non-gaming revenues dropped by 8.8 percent during the period.

Cost controls also helped Boyd's three downtown casinos, which posted an increase in operating income for the quarter.

Operating income was up 9.7 percent to $4.9 million, while gaming revenues increased by 1.6 percent due to increased slot and table game wagers. Also boosting returns was a decline in depreciation expense as certain assets have become fully depreciated, the company said.

Operating income increased downtown despite lower charter revenue per passenger and an increase in air charter costs at Vacations Hawaii, the company's Honolulu-based travel agency that brings waves of Hawaiians to Boyd's downtown casinos each year.

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