October 25, 2010 / 11:45 AM / 7 years ago

UPDATE 1-Boyd Gaming quarterly profit falls 11 pct

* To not exercise option to buy MGM’s Borgata interest

* Adj EPS $0.02 vs est $0.05

* Rev falls 4 pct to $595.4 mln vs est $589 mln

Oct 25 (Reuters) - Casino operator Boyd Gaming Corp (BYD.N) posted an 11 percent drop in its quarterly profit amid a continued weakness in consumer spending, especially at its Las Vegas properties.

Separately, Boyd also said it will not exercise its right to match the offer MGM Resorts International (MGM.N) got for its non-controlling 50 percent interest in their joint-venture Borgata resort in Atlantic City, New Jersey.

Earlier this month, casino operator MGM Resorts said it received an offer for its 50 percent stake in the Borgata casino hotel. It valued the offer at just over $250 million. [ID:nN12204879]

Boyd reported third-quarter net income of $5.6 million, or 6 cents per share, down from $6.3 million, or 7 cents per share, a year earlier.

    Excluding special items, the profit was 2 cents a share, compared with the average analyst estimate of 5 cents a share, according to Thomson Reuters I/B/E/S.

    Net revenue at Boyd, which runs Las Vegas properties that cater mainly to local residents rather than tourists, fell 4 percent to $595.4 million. Analysts had expected revenue of $589.0 million.

    The company owns and operates 16 casinos in six states, including a 50-percent stake in Borgata.

    The Las Vegas, Nevada-based company’s shares have lost nearly 39 percent of their value since reporting first-quarter results in May. They closed at $7.99 Friday on the New York Stock Exchange. (Reporting by NR Sethuraman in Bangalore and Deena Beasley in Los Angeles; Editing by Aradhana Aravindan)

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