Boyd Gaming profit rises on lower charges

Last year, Boyd -that is currently developing Echelon on the Las Vegas Strip- took charges related to the closing of Stardust on the Las Vegas Strip, the retirement of the Blue Chip gaming vessel in Indiana and the expansion of Borgata, a joint venture with MGM Mirage, in Atlantic City, New Jersey.

Excluding these charges as well as impacts from debt retirements this year, Boyd earned 45 cents per share from continuing operations, compared with 49 cents per share in the same quarter a year ago. Wall Street analysts, on average, were expecting Boyd to post earnings of 47 cents per share, according to Reuters Estimates.

Revenue fell 7.3 percent to us$ 511.4 million, burdened by the November closure of Stardust, which is making way for Echelon. Boyd also faces increased competition at its casinos on the U.S. Gulf Coast and in the Midwest. Analysts, on average, had been looking for revenue of us$ 526.3 million.

In addition to the construction of the Echelon, which is slated to open in the third-quarter of 2010, Boyd is adding a hotel to Atlantic City's Borgata and expanding Indiana's Blue Chip casino with a spa and new guest rooms.