A.C. has troubles, but Borgata booms

Borgata Hotel Casino & Spa, Atlantic City's highest-grossing and most profitable casino, logged excellent fourth-quarter financial results, Boyd Gaming Corp., its managing partner, reported Thursday.

"We set all-time quarterly records for market share in every single metric, including table win, slot win, poker, and gross gaming revenue," Keith Smith, Boyd's president and chief executive, said on a conference call with analysts. "We're seeing growth in our non-gaming business as well."

Borgata had net revenue in the fourth quarter of $179.1 million - including $7 million from online gaming - up 14 percent from the same period the year before. Fourth-quarter operating profits, excluding a 2013 debt-refinancing loss, more than doubled to $36 million from $16.4 million.

Smith said that Borgata, which Boyd owns in a 50-50 partnership with MGM Resorts International, still expects to receive $88 million from Atlantic City for a property-tax settlement last year.

The money was due by the end of the year, but financial turmoil forced Atlantic City to cancel a December bond sale that would have raised money to pay Borgata.

Since then, Gov. Christie appointed Kevin Lavin as emergency manager. He was given until late March to come up with a plan to stabilize Atlantic City's finances.

"He's in the early phases of that," Smith said. "Other than that, I don't think we know much else until we see what plan is put together by the emergency manager and what happens with it."

One thing Borgata is not counting on is a break on property taxes. The company budgeted for an increase in property taxes this year, though the rate has not yet been set.

Among the highlights of Borgata's results cited by Smith was strong hotel performance.

"With the decline of available rooms in the market, demand for Borgata's room product is growing," Smith said.

That allowed Borgata to keep the Water Club, a second hotel tower at the complex, open for an additional 17 nights last year. That generated an additional 9,500 occupied room nights, Smith said.

Atlantic City lost 4,443, or about 24 percent, of its hotel rooms last year with the closures of Atlantic Club, Showboat, Trump Plaza, and Revel.

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