Boyd Gaming Corp.'s (BYD) second-quarter income fell 41% on lower revenue and weakness in all its markets as revenue missed expectations.

As one of the oldest Las Vegas gambling companies, Boyd's customers include many locals, who are struggling with rapidly declining home values and job losses. The company has indefinitely delayed its $4 billion-plus Echelon Place project in Las Vegas, but it has expressed interest in buying bankrupt Station Casinos Inc. Chief Executive Keith Smith reiterated that interest on Wednesday.

Results from other casino companies in the last week, including Las Vegas Sands Corp. (LVS) and MGM Mirage (MGM), have generally been dour, as MGM swung to a loss and Sands' loss widened as the industry continues to suffer from sharp drops in revenue and visitors.

Smith said although business conditions remained difficult in all the company's regions, results were in line with its expectations. Despite the economic uncertainty, the company believes "the precipitous declines that began in the second half of 2008 are over, as we continue to see stabilization in our business," he said.

Boyd, which jointly owns the Borgata in Atlantic City with MGM Mirage, posted income of $12.8 million, or 15 cents a share, down from $21.7 million, or 25 cents a share, a year earlier. The latest results included a net 3 cents in gains, while the prior year's included a net 5 cents in charges. Excluding items, earnings fell to 12 cents from 30 cents.

Revenue decreased 8.2% to $423 million.

Analysts polled by Thomson Reuters expected earnings of 12 cents and revenue of $432 million.

Gaming revenue fell 7.2% while room revenue declined 11%. At the Borgata, earnings grew 22% on cost-control measurse despite a 6.6% slide in revenue.

Boyd's shares closed Tuesday at $9.94 and haven't traded premarket.

-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353; kerry.benn@dowjones.com