Boyd Gaming lauds superb Q1 benefiting from online growth
Boyd Gaming cites confidence in achieving its full-year corporate objectives following an “excellent start to 2023”.
Commenting on the results, President and CEO Keith Smith noted that a “proven business model and experienced team” gives the operator confidence in its ability to navigate the current economic climate.
Publishing its Q1 financial update, Boyd Gaming declared revenues of $964m, up 12 per cent year-over-year (Q1 2022: $860.7m) with net income growing to $199.7m (2022: $162.9m).
The company’s total adjusted EBITDAR rose by 8.4 per cent YoY during the quarter to $367.1m (2022: $338.8m).
Smith commented: “The first quarter was an excellent start to 2023 for our company, as we again demonstrated the strength of our business model and the resilience of our diversified portfolio.
“We continued to see increased play from our core customers across the country, as well as strong growth in our non-gaming operations.”
Per segment, gaming revenues declined slightly YoY to $664.3m (2022: $668m), whilst food & beverage revenue rose to $71.6m (2022: $63.7m), and room revenue increased to $50m (2022: $42.4m).
However, online revenue – which includes the company’s sports betting partnership with FanDuel, online market access agreements, and online casino Boyd Interactive – had the largest growth YoY, rising by 123 per cent to $122.9m (2022: $55.1m).
Boyd Gaming attributed the online growth to the launch of “sports-betting operations in Ohio and Kansas, continued growth in existing markets, and contributions from Boyd Interactive”.
Per region, Smith noted that Boyd Gaming’s Nevada segments “delivered outstanding performances” with revenues of $240.3m for Las Vegas Locals (2022: $227.6m) and $56.6m for Downtown Las Vegas (2022: $49.5m).
The CEO added that increased tourism in the area and growing play drove “record first-quarter EBITDAR and operating margins” in both Las Vegas segments.
Midwest & South revenue fell slightly YoY to $512.2m (2022: $517.1m) as the company said results were “impacted by continued softness” at Louisiana and Mississippi properties. Managed & other revenue also rose to $32.1m (2022: $11.6m).
Smith added that the Sky River Casino at Elk Grove near Sacramento, in partnership with the Wilton Rancheria tribe, continues “to perform ahead of expectations” thanks to recent property investments.
“Our proven business model and experienced team are delivering strong results for our shareholders, giving us confidence in our continued ability to successfully navigate the current economic environment,” the CEO concluded.