Boyd Gaming Not Paying Dividends

Boyd Gaming Pulls Out Dividends; Financial Situation Under Control

March 29, 2020 TamaraTam

All gambling operators across the USA have paused their activities. Sports betting was among the first banned sectors due to the potential spread of Covid-19. Further on, casinos have closed their doors either on a voluntary basis or under the government order.

The shutdown of operations causes significant losses for most of the operators and Boyd Gaming is one of the affected providers. The operator has just disclosed that it won’t pay out dividends to shareholders. It is also working on a financial report which will uncover lower performance than expected…

About Decision

Boyd Gaming holds 30 properties across the American ground. It has introduced a temporary shutdown which will probably be continued after the initial period. On this occasion, the operator issued the statement:

“The Illinois Gaming Board has extended its previous closure order to April 8. This closure order impacts all gaming operations in the state of Illinois, including Par-A-Dice, which closed on March 15.”

Almost the same situation is taking place in Louisiana has extended the lockdown period.

Boyd explained:

“The Louisiana Gaming Control Board has extended its previous closure order through April 12. This order impacts Amelia Belle, Delta Downs, Evangeline Downs, Sam’s Town Shreveport, and Treasure Chest, all of which closed on March 17 in compliance with a statewide closure order from the Board.”

Expectations

With the extension of the suspension period, Boyd Gaming is looking to minimize its expenses. It will cut off dividends and search for additional savings. The company is reconsidering its current financial performance and soon will unveil new figures. Additionally, it will not issue any guidance in the following period.

The elimination of dividends will have a positive result on the company performance. This step will the company in saving about $21.85 million while withholding the dividend for the entire year. Only a month ago, Boyd was trading at $27.55 and now its shares stand at $15.38.

About:

Boyd Gaming is a reputable provider of casino entertainment. It is focused on delivering long-term, sustainable solutions and making a real difference in the market. It is a publicly-traded company with more than 50 years of experience in the sector. It operates around 30 casinos in ten states and it is well-versed in Tourism, Casino, Hospitality, Entertainment, Career, and Food and Beverage.

Source:

„Boyd Gaming to cut dividends, financial guidance over coronavirus“, Erik Gibbs, calvinayre.com, March 26, 2020.