Borgata Hotel Casino & Spa’s five-day shutdown for Hurricane Sandy sent its net revenues and operating profits tumbling by double digits in the fourth quarter, parent company Boyd Gaming Corp. reported Monday.
Analysts noted that the already depressed Atlantic City marketplace was made even weaker by the hurricane’s Oct. 29 arrival. Justin Sebastiano, a casino analyst for Brean Capital, said the hurricane caused Borgata to suffer an “abysmal quarter.”
Borgata’s net revenues were down 16 percent to $147.6 million and gross operating profits slumped 63 percent to $14 million compared to the fourth quarter of 2011, Boyd said. For all of 2012, net revenues fell 6 percent to $686.2 million, while operating profits declined 26 percent to just under $117 million.
Paul Chakmak, Boyd’s chief operating officer, told analysts during a conference call that Borgata was “severely impacted” by Hurricane Sandy. He said there were more than 5,000 room-night cancellations in October and November related to the hurricane’s lingering effects.
Borgata began to stabilize in December, including rebuilding some of its group business lost to the hurricane, Chamak said. However, he stressed that it is premature to speculate how well Borgata will do heading into the peak summer tourist season.
Like other Atlantic City casinos, Borgata closed down on Oct. 28 when the hurricane was approaching the New Jersey coast. Borgata did not reopen until Gov. Chris Christie lifted the city’s mandatory evacuation order five days later.