Boyd Gaming Q2 2023 Results Show “Solid” Performance

Spread the Word:

Boyd Gaming Corporation, a leading American gaming casino and hospitality operator, recently published its Q2 2023 financial results.

Despite some areas of decline, the company reported a slight increase in total revenue, which reached $917 million. That’s up 2.5% from $894.5 million in Q2 2022. However, not all segments of the company saw growth. Physical casino gaming revenue fell by 3.5% to $660.7 million, compared to $684.9 million in the same period last year.

Boyd Gaming was founded in 1975. It currently operates 28 casino gaming venues across 10 states, including The Fremont Casino and Hotel in downtown Las Vegas (pictured).

“In summary, we are pleased with our second quarter results,” said Boyd Gaming CEO and President Keith Smith in a company call.

“Our effective operating model, strong management teams, and ongoing growth initiatives all contributed to solid results during the quarter.”

Online Gaming Revenue Sees Significant Growth

Despite the drop in gaming revenue, Boyd Gaming’s online sector showed a promising increase. The company’s online gaming revenue rose to $85 million in Q2 2023, marking a nearly 50% increase from $56.8 million in Q2 2022.

Smith praised the company’s online gambling business, and, particularly the Sky River Casino in California for helping to grow revenues.

“We maintained our focus on building loyalty among our core customers while our operating teams continued to effectively manage expenses throughout the business, achieving strong company-wide margins consistent with recent quarters,” he said.

Challenges in Property Revenues

Despite the positive results in online gaming, Boyd Gaming’s property segments saw year-over-year decreases in revenue and adjusted EBITDAR.

The Las Vegas segment saw a 2.3% drop in revenue to $230.9 million, compared to $236.5 million in Q2 2022. The Downtown segment also saw a slight decrease in revenue and adjusted EBITDAR from construction disruptions at Fremont and Main Street Station.

However, Smith remains confident in the company’s direction and ability to create long-term value for its shareholders.

“Property operating results were impacted by difficult year-over-year comparisons early in the quarter, while overall results were strengthened by our key growth initiatives, including online gaming and Sky River Casino,” he said.

These difficult year-on-year comparisons for Las Vegas casinos are something experts have been stressing for several months now. That’s after Sin City venues smashed record after record during the 2022 recovery period from COVID-19 pandemic restrictions.

Analysts’ Take on Boyd Gaming’s Performance

Despite the mixed results, analysts remain optimistic about Boyd Gaming’s future. Off-strip Las Vegas casinos, like Boyd’s downtown Fremont Hotel and Casino and the Suncoast Hotel and Casino, have experienced relatively modest gains. That’s compared to a slowdown for the Las Vegas Strip resort giants over the past couple of months. But the city is set to see a host of big ticket events in the coming year, including the Formula 1 Las Vegas Grand Prix race in November.

“While investors remain aware of macro risks, we believe that BYD has become investors’ preferred regional gaming stock, given its stable end-markets, healthy balance sheet, and capital return profile,” noted Roth MKM analyst Edward Engel.

Stifel analyst Steven Wieczynski also expressed a positive outlook.

“If flocking to safety is what investors will start gravitating to moving forward, based on Boyd’s significant FCF [Free Cash Flow] generation and their pristine balance sheet, we believe Boyd could be an outperformer in the regional gaming space for the foreseeable future,” he said.

Related News

March 6, 2024

Five California Tribal Gaming Compacts to Be Handled Federally in Landmark Ruling

The Attorney General of California has this week agreed with a February ruling that allows five California Tribes to negotiate gaming compacts directly with the U.S. government instead of with […]

March 1, 2024

David Rebuck, New Jersey Division of Gaming Enforcement Director, Retires After 13 Years

David Rebuck, the 13-year head of New Jersey’s Division of Gaming Enforcement (DGE), retired on Thursday, effective immediately. He exits as the longest-serving DGE director in its 47-year history, having […]

February 29, 2024

NFL Players Association Team Report Cards Don’t Match Performance on the Field

The NFL Players Association released its annual team report cards on Wednesday, and their rankings tell a very different story than what we saw in the standings. First and Last […]

February 25, 2024

Churchill Downs Reports Record 2023 Revenues

Kentucky-based horse racing and gambling operator Churchill Downs Incorporated (CDI) reported a record $2.5 billion in revenues for 2023. That’s up 36% compared to 2022. The company’s results were buoyed […]

Stay Ahead of the Game

Are you ready to take your online gambling experience to the next level? Sign up for the LetsGambleUSA newsletter and get the latest news, exclusive offers, and expert tips delivered straight to your inbox.