Boyd Gaming revenue slightly down to $960M in "challenging" Q1

Boyd Gaming has unveiled its Q1 2024 earnings report, reporting $960.5 million in revenue during the period. The figure was only marginally lower than the $964 million posted in the same quarter prior year, with the company calling the first quarter of 2024 "a challenging start to the year."

Net income for the first quarter of 2024 amounted to $136.5 million, or $1.40 per share, which marks a decline from the $199.7 million recorded for the same quarter in 2023. Adjusted EBITDAR for Q1 was $330.5 million, also down from $367.1 million in the first quarter of 2023. 

Breaking down the revenue by segments, gaming revenue slipped 4.6% to $634.1 million amid declines within the land-based businesses. Meanwhile, food and beverage revenue remained steady at $72.6 million, while room revenue saw a slight decrease to $48.9 million. 

Management fees and other revenues were relatively level at $22.2 million and $36.4 million, respectively. Nevertheless, online saw revenue up 19% year-over-year to $146.2 million, the brightest spot in Boyd's Q1 report, almost entirely offsetting the decline from Boyd’s land-based businesses.

Costs-wise, total operating expenses increased 9.1% to $741.1 million. One of the main increases came within the online business, where costs were 23% higher at $125.5 million. In contrast, land-based operational costs were either level or lower. Moreover, the group also paid $41 million in tax, resulting in a net profit of $136.5 million for the quarter, a decrease of 31.7% from last year's $199.7 million. 

In terms of land-based casino performance, the Midwest and South were still the primary money-makers for Boyd. For Q1, revenue amounted to $500.8 million, down 2.2% from $512.2 million in the previous year. 

The Las Vegas Locals segment also saw a revenue decrease of 6.1% to $225.6 million, while Downtown Las Vegas revenue posted a 5.5% dip to $53.5 million. As per the report, managed and other revenue increased by 7.2% to $34.4 million in Q1.

Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: "After a record 2023, the first quarter of 2024 was a challenging start to the year. However, throughout our business, many of the positive trends from the fourth quarter continued into the new year."

Smith noted that the Las Vegas Locals segment results were being compared to a record Q1 in 2023 and highlighted “increased competitive pressures” in the market, namely the Durango Casino & Resort that opened in December. Meanwhile, the Midwest and South business was affected by poor weather in the early part of Q1.

"By focusing on our disciplined operating and marketing strategies, we have been able to maintain strong operating margins. Additionally, our significant cash flows and strong balance sheet allow us to continue returning capital to our shareholders through our ongoing share repurchases and quarterly dividend programs. Looking ahead, we remain confident in our ability to successfully navigate the current environment and deliver value to our shareholders," he concluded.