|Boyd Gaming Corp., an owner of casinos in Las Vegas and Atlantic City, N.J. in a financial press release to Reuters reported that it will begin paying a quarterly dividend of 7.5 cents a share. The company also said July revenue at its $1.1 billion Borgata casino in Atlantic City, N.J., ranked it among the top 25 percent of casinos in the market. The Borgata, the first casino in Atlantic City in 13 years, is a joint venture between Boyd and MGM Mirage. |
Second-quarter profit plunged by 74 percent on account of a sluggish economy, heavy competition and the Iraq war the company claimed.
Boyd said slots and table games were crowded at the Borgata, a joint venture with MGM Mirage MGG.N which opened on July 3, but it forecast third-quarter profits from the $1.1 billion venture would be offset by opening costs and said the outlook for the end of the year at the property was too tough to call.
The Las Vegas-based company also joined some rivals by declaring its first dividend, 7.5 cents per quarter, meeting the demands of casino investors who have clamoured for such payouts since the tax rate on dividends was cut.
Boyd, which also owns the Stardust, the Las Vegas home of singer Wayne Newton, and a string of smaller casinos, reported a net profit of $4.4 million, or 7 cents per share, compared with $17.0 million or 26 cents per diluted share a year ago.
Adjusted earnings, excluding $11.9 million in pre-opening costs, a $3.5 million retroactive tax in Indiana paid and a $6.1 million tax benefit in the quarter, fell to $13.7 million or 21 cents per share, compared with average Wall Street expectations of 28 cents per share, according to a poll of analysts by Reuters Research, a unit of Reuters Group Plc.