Boyd posts solid Q3 performance at $877M in revenue; near-record quarterly EBITDAR

Boyd Gaming has shared its financial results for the third quarter of the year. For the period ended September 30, the casino operator delivered revenues of $877.3 million, increasing slightly from $843.1 million in the same quarter last year. The company further reported a net income of $157 million – or $1.46 per share –, up when compared to $138.2 million for the year-ago period.

Keith Smith, President and CEO, called the quarter “another solid performance” by the company, as the business achieved third-quarter EBITDAR that was second only to last year’s record quarterly performance. The results were driven by the company’s continued focus "on core customers and sustained efficiencies” throughout its business, as Boyd’s operating model is “successfully meeting” today’s challenges.

“Our strong operating performance is producing robust free cash flow, allowing us to return nearly $500 million in capital to our shareholders so far this year,” noted Smith. “Overall, we are encouraged by the resiliency of our business, and remain confident in our strategy and our ability to deliver consistent results in the current economic environment.”

Total Adjusted EBITDAR for the period was $337.7 million, slightly down from a record-setting $340.7 million in Q3 2021. During the period, the company benefited from “consistent” revenue trends in the Las Vegas Locals segment, as play from core customers continued to grow. EBITDAR for the segment remained well above pre-pandemic levels, rising nearly 75% over Q3 of 2019 and trailing only last year’s record third quarter.

Keith Smith

The Midwest & South segment grew revenues slightly year-over-year. EBITDAR nearly matched last year’s record third-quarter results and was 37% above 2019 results. As for the Downtown Las Vegas segment, it delivered record third-quarter EBITDAR and margins, with the former increasing 49% over the third quarter of 2019. 

Results for Downtown Las Vegas benefited from the reopening of the Main Street Station property in September 2021, and the return of Hawaiian customers, an important demographic given the company’s historic marketing connections. While visitation from Hawaii is still below pre-pandemic levels, total play is 7% higher.

“This quarter the gaming revenue growth from our core customer helped to offset declines in spending from the stimulus-driven results we’ve benefited from last year during the third quarter,” Chief Financial Officer Josh Hirsberg told investors, as reported by Las Vegas Review-Journal. “As a result, gaming revenues are essentially even with last year.”

As for latest developments in its portfolio, Boyd Gaming opened Sky River Casino near Sacramento, California, on August 15. The company has a seven-year management agreement to operate the venue on behalf of the Wilton Rancheria Tribe. Management fees from this casino are to be reported within the company’s Midwest & South segment.

Interior of Sky River Casino

Additionally, the operator continues to make progress toward completing its previously announced acquisition of California-based online gaming company Pala Interactive for a cash consideration of $170 million. Boyd issued an update on the matter, and now anticipates the acquisition to close “in the next several weeks.” Officials said the iGaming sector was important for the company’s growth, with Boyd planning to take a regional approach by operating in states with existing Boyd enterprises and possibly some key adjoining states.

Moreover, FanDuel — which the company has a 5% stake in and recently renamed its Fremont casino sportsbook to that brand— is expected to generate about $3 million in cash flow this year and more in 2023, executives said, according to Review-Journal. FanDuel launched sports betting in Kansas during Q3 and will do the same in Ohio in the coming months.

The company paid a quarterly cash dividend of $0.15 per share on October 15. As part of its recurring share repurchase program, the business repurchased approximately $135 million in stock during the third quarter of the year. As of September 30, it had approximately $346 million remaining under current share repurchase authorizations. And as of the same date, Boyd had cash on hand of $252.3 million, and total debt of $2.9 million.