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Friday August 1,2014 : BOYD GAMING CHIEF BULLISH ON INTERNET OPERATIONS
But lacklustre overall results for US gaming giant.
Continued weakness in casual play was the root cause for the weak performance of the Boyd Gaming group, said CEO Kevin Smith this week as he revealed that the US gambling group had suffered a decline in profit and revenue in the second quarter.
Group profits were significantly down, declining from $11.6 million in Q2-2013 to only $700,000 this year.
Revenue for the three months to end June was down 2 percent at $722.5 million, with adjusted earnings up at $160.2 million, thanks to an $11 million tax settlement from its Atlantic City joint interests with MGM, where Boyd has a 50 percent stake in the Borgata.
Boyd’s share of the Borgata in New Jersey delivered just under $182 million, rising by $9 million from the preceding year.
Online gambling operations contributed a useful $6.7 million to that amount, helping adjusted earnings for Borgata to reach $30,8 million - a 11 percent increase.
Smith took a positive outlook on the company's online gambling activities in New Jersey, where its partnership with MGM has seen the market-leading Borgata brand break even in July, an occurrence which Smith characterised as a key milestone in the continued development of the internet enterprise.
Despite lower than expected results for the genre, which lost $1.8 million in the quarter, Smith remains confident, saying that he expects online gambling revenues to start picking up in New Jersey as the weather cools.
Philly.com reports that Borgata's share of online gaming revenues in New Jersey was 29 percent.
Smith revealed that Boyd's future plans include the launch of a mobile sports book in Nevada in the near future.
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NETPLAYTV TRADING UPDATE POSTED -
Online and interactive television gambling group NetPlayTV has released a Q3-2014 trading update indicating an increase in new players, but noting heavy marketing spend which could impact its full year results.
Canada Becoming an Online Gambling PowerHouse -
Content agency Accesswire reports from Canada that the country is rapidly becoming a key player in the online gambling industry, enjoying growth of 7 to 10 percent annually and generating market value of around C$30 billion.
AMAYA REVEALS RATIONAL GROUP POKER NUMBERS -
Because it was never a publicly-listed company the Rational Group, parent of Pokerstars and Full Tilt Poker, has in the past not been required to reveal its financial results, but new owner Amaya Gaming changed that this week with the publication of the company’s current half-year numbers as part of a report on the $4.9 billion acquisition deal.
NEW JERSEY ASSEMBLY APPROVES SPORTSBETTING BILL -
The New Jersey House of Assembly has followed the state Senate in voting overwhelmingly in favour of legislation allowing operator-regulated sports betting in the latest attempt by the state legislature to get an intrastate sportsbetting bill on the books.
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