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Boyd withdraws dividend after Covid-19 closures

News

Land-based gaming operator Boyd Gaming has suspended its quarterly cash dividend due to the continued effects of the novel coronavirus (Covid-19) pandemic.

The decision came after all of Boyd’s casinos – and all other casinos in the United States – have closed in order to limit the spread of the disease. The operator closed casinos in the nine states in which it operates in line with orders in each state for casinos to close.

The operator also withdrew its 2020 earnings before interest, taxes, depreciation, amortization, and restructuring (EBITDAR) guidance of $915m-$935m.

Boyd is the latest operator to suspend its dividend because of the virus. Last week, William Hill did so because of the suspension of professional sports – with 53% of 2019 revenue coming from sports betting – and the closure of US casinos.

Formerly state-owned French operator FDJ also suspended what would be its first dividend payment as a publicly listed company, after announcing that it expects a revenue decline of around €192m and an earnings decline of around €77m because of the outbreak.

Boyd also announced that its next shareholders meeting, scheduled for 9 April, will be held online.

In 2019, Boyd made income of $157.6m and adjusted EBITDAR of $660.6m on revenue of $2.63bn.