U.S. gaming financial review: Sept. 17-06
News from the world of U.S. gaming financials this past week begins with word that the Boyd Gaming/MGM Mirage jointly-owned Borgata Hotel Casino and Spa has registered a large financial splash in the Atlantic City casino market following its recent phase one expansion roll-out. The $525 million upgrade which featured the addition of more casino floor space and three new restaurants helped its revenue climb 14 percent in the month of August, according to the New Jersey Casino Control Commission. The second phase of the project is due next year, scheduled to cost $325 million and will feature an 800-room hotel tower.
Competitor Harrah’s Entertainment did not fare as well during the time frame, with its revenue dropping 2.3 percent, encompassing its Showboat, Marina, Bally’s and Caesar’s properties. Of note, the after-effects of a three-day July shutdown due to a state-imposed lockdown during a budget impasse were not known. Further, given the high-profile Borgata expansion, many operator reported high levels of comping during the time frame unseen since the Borgata’s original opening in summer 2003.
At Friday close, Boyd Gaming ended up $1.16 per share at $36.54, MGM Mirage followed suit with a $1.69 rise to $38.50, while Harrah’s Entertainment ended strong as well with a $1.49 upswing of its own, closing at $64.51 per share. Elsewhere, it was announced this week that both attendance and wagering totals were down this past year for Churchill Down’s Arlington Park racetrack. Total wagering totaled $371.1 million, a drop of 8.5 percent from last year’s total of $405.4 million, with attendance of 655,788 – a drop of eight percent – from 715,023 one year ago. They closed the week up on the NASDAQ at $40.09 per share, a 1.7 percent increase. Meanwhile, investors scaled-back on Wynn Resorts during the time frame, as their stock fell 3.27 percent to close at $73.10, a drop of $2.47 per share.
- Rex Harris