Boyd Gaming’s revenue rises by 6.4% in Q3

Neha Soni October 28, 2024

SiGMA news

Gaming and hospitality company Boyd Gaming has reported an increase in its gaming revenue, posting a 6.4 percent increase year-over-year in the third quarter of this year. The company’s revenue reached $961.2 million, compared to $903.2 million last year.

The increase was attributed to the positive impact of Boyd’s investments across segments, especially in its Downtown Las Vegas and Midwest & South properties. Downtown Las Vegas’s revenue growth was a key driver for the company’s financial statement for the quarter. The segment’s revenue grew 7.6 percent year-over-year to $53.3 million, benefitting from recent property investments and an uptick in Hawaiian tourism.

The company’s adjusted earnings before interest, taxes, depreciation, amortization, and rent (EBITDAR) reached to $336.6 million, increasing by 4.9 percent. Adjusted earnings per share for the quarter was $1.52, higher than the Zacks Consensus Estimate of $1.41 by 7.8 percent. Last quarter, the company’s adjusted EPS of $1.36. However, Boyd’s net income for the quarter witnessed a slight decline, falling to $131.1 million from $135.2 million in Q3 2023. Boyd’s Online segment showed the strongest growth, with revenue rising 56.5 per cent to $141.3 million. This comes due to increased contributions and one-time benefits from the company’s market-access agreements across the nation. The company’s Midwest & South segment noted an increase in revenue, reaching $522.4 million from $513 million reported in the prior-year quarter. This growth was led by the Treasure Chest Casino in Louisiana, which transitioned to a new land-based facility in June. A shift to land-based operations has also aided the company’s growth, with its offering available to a broader market that prefers accessible, land-based facilities over its riverboat format.

Customer trends remain stable

“Our company continued to produce solid results in the third quarter, as underlying customer trends remained stable,” said Keith Smith, President and CEO of Boyd Gaming. According to him, the strategic improvements made in Las Vegas have enhanced guest experience and increased visitation, leading to the revenue growth. “These investments produced strong returns, driving revenue and Adjusted EBITDAR gains in both segments. We also benefited from excellent performances in both our Online and Managed businesses, demonstrating the value of our diversified business model. Smith continued, “We strengthened our growth pipeline, securing an opportunity to develop a best-in-market casino resort in Norfolk, Virginia, while continuing work on property enhancements nationwide. And we continued our commitment to returning capital to shareholders, repurchasing more than $200 million in shares during the quarter. In all, we are pleased with the ongoing performance of our business and remain focused on enhancing shareholder value.”