Boyd Gaming Q3 Results Promising: Casinos Down Slightly, but Online Shows Huge Growth

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Boyd Gaming, a prominent Nevada-based gambling operator, has released its financial report for Q3 2023. The company reported revenue of $903.2 million during this period, marking an increase from the $877.3 million earned in the same quarter of the previous year.

Keith Smith, the president and CEO of Boyd Gaming, emphasized the value of Boyd Gaming’s diversified business model, going beyond its traditional Nevada casino venues.

“Continued strength in play from our core customers, strong results from Sky River and online gaming, and growth in our nongaming business all contributed to a solid performance in the quarter,” he said.

“However, quarterly results were impacted by declines in play from our retail customers and ongoing cost pressures, both related to the challenging economic environment.”

Online Growth Leads to Reinvestment in Physical

One of the highlights of the report was the success of Boyd Gaming’s property reinvestment initiatives. The company’s Fremont Casino in Las Vegas, after its recent $50 million expansion and renovation, reported record quarterly results. This showcases the company’s commitment to enhancing its properties to provide a better experience for its patrons.

The financial details further revealed adjusted revenues of $320.8 million for Q3 2023, which is a slight decrease from the $337.7 million in Q3 2022. Adjusted Earnings for the same period stood at $137.3 million, or $1.36 per share.

Boyd Gaming’s U.S. online casino business has shown promising results, up 72% on Q3 2022’s numbers. That was enough to offset the overall slight decline in land-based gaming revenue.

Boyd Interactive, which the company acquired in November 2022, continues to do well. This acquisition, along with its continuing 5% stake in market leading U.S. sports betting operator FanDuel, has boosted Boyd’s online segments profits.

“We’re not at a point of talking about returns on investment, but it is a long-term play. It is something where we view it as an important part of a long-term strategy; having both an online business as well as a strong land-based business to compete effectively,” Smith said.

Property Reinvestment and Shareholder Returns

The company also highlighted its commitment to its dividend and share repurchase program. A quarterly cash dividend of $0.16 per share was paid on October 15, 2023. Boyd also continued its share repurchase initiative by buying back $106 million in stock during Q3 2023.

In terms of shareholder returns, Boyd Gaming has been consistent in its capital return program. Over the past two years, the company has returned more than $1 billion to its shareholders.

It finished Q3 2023 with $269 million in cash and a $2.9 billion debt pile.

“During the quarter, we continued to leverage our strong free cash flow to pursue a balanced capital allocation strategy that is creating significant value for our shareholders,” Smith said.

“We demonstrated the growth potential of our property reinvestment initiative, delivering record quarterly results at the Fremont following its recent expansion project. And we remain committed to our capital return program, having returned over $1bn to shareholders in the last two years through our ongoing share repurchases and dividends.”

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