Boyd Gaming’s online gambling operation post third consecutive profitable quarter

Casino operator Boyd Gaming says its online gambling operation in New Jersey posted its third consecutive profitable quarter in Q1.

Boyd, which shares ownership of Atlantic City’s market-leading Borgata Hotel Casino with MGM Resorts, said its online gambling operation generated earnings of $1.1m in the three months ending March 31. It’s not a huge sum, but it compares quite favorably to the $3.2m loss the online business recorded in Q1 2014. Earlier this year, Boyd projected that the online operation – a partnership with UK-listed online gambling operator and California’s Pala Interactive – would generate full-year earnings of between $3m and $5m.

The Borgata was also a solid performer on the brick-and-mortar front, with revenue rising 9.2% to $182.6m and earnings nearly doubling to $37.8m. Boyd CEO Keith Smith told analysts the “right-sizing” Atlantic City endured over the past year “has helped stabilize the operating environment.” Having lost four of its 12 casinos, Smith believes the new AC “appears to have reached a level of supply that is appropriate for demand and the remaining properties are generally seeing better results.”

Boyd’s overall revenue was up 1.8% to $550.6m, while adjusted earnings were up 11.1% to $149.2m. Profit came to $35.1m compared to a net loss of $6.2m in the same period a year ago. This quarter’s numbers were boosted by a favorable tax ruling that reduced Boyd’s Q1 tax provision by $23.2m.