Boyd Gaming posts 6.4% revenue boost in Q3, driven by Las Vegas and nationwide growth

Gaming and hospitality company Boyd Gaming Corp. announced its financial performance for the third quarter of 2024, recording a 6.4% increase in revenue from the previous year. Total revenue for the quarter reached $961.2 million, compared to $903.2 million in Q3 2023.

This rise was attributed to the continued success of Boyd’s investments across various segments, particularly in its Downtown Las Vegas and Midwest & South properties. Adjusted EBITDAR (earnings before interest, taxes, depreciation, amortization, and rent) also increased by 4.9% to $336.6 million.

The company’s adjusted earnings for the quarter were $139.3 million, or $1.52 per share, up from $137.3 million, or $1.36 per share, last year. Although net income saw a slight decline, registering $131.1 million, or $1.43 per share, compared to $135.2 million in Q3 2023, Boyd remains optimistic about its continued expansion and the profitability of its investments. 

Boyd Gaming’s Downtown Las Vegas segment emerged as a key growth driver for the quarter, benefiting from recent property investments and an uptick in Hawaiian tourism, which has historically been a substantial customer base for this area.

"Our company continued to produce solid results in the third quarter, as underlying customer trends remained stable," said Keith Smith, President and CEO of Boyd Gaming. He attributed the revenue growth in Las Vegas to strategic improvements that enhanced the guest experience and increased visitation.

The Midwest & South segment recorded a strong third-quarter performance, led by the Treasure Chest Casino in Louisiana, which transitioned to a new land-based facility in June. This facility contributed to record numbers for the segment, with other properties in the Midwest and South showing stable performance as well.

The shift to land-based operations has proven advantageous for Boyd Gaming, opening its offerings to a broader market and accommodating patrons who prefer accessible, land-based facilities over the previous riverboat format.

The company’s online gaming and managed operations also performed well with the online segment seeing substantial revenue and EBITDAR growth, which CEO Keith Smith attributed to increased contributions from market-access agreements and one-time benefits.

The managed businesses, especially Sky River Casino in Northern California, also continued to perform positively. Smith highlighted this strength, calling it “the value of our diversified business model.” 

In the meantime, Boyd Gaming has actively pursued expansion initiatives, most notably securing the rights to develop a casino resort in Norfolk, Virginia. This project is a move to expand Boyd’s market presence beyond its established territories, tapping into new regions with high growth potential. Additionally, the company continued to invest in property enhancements nationwide, keeping facilities updated and competitive within their respective markets.

Shareholder returns remain a priority for Boyd, with the company repurchasing over $200 million in shares during the third quarter. This buyback initiative is part of its strategy to return capital to shareholders while enhancing shareholder value. As of September 30, Boyd Gaming had $343 million left under its current share repurchase authorization. Moreover, Boyd paid a quarterly cash dividend of $0.17 per share on October 15, seeking to deliver steady returns to its investors.

However, despite the overall growth, Boyd’s Las Vegas locals segment faced competitive pressures, particularly at its Orleans and Gold Coast properties. Increased competition impacted results for these properties, although Boyd’s other Las Vegas locals operations aligned with same-store market performance. The company has acknowledged these challenges and continues to monitor the segment closely as it explores ways to enhance its competitive stance.

Boyd closed the quarter with $286.3 million in cash on hand and a total debt of $3.1 billion, positioning it with the liquidity needed to pursue growth while managing its financial obligations. This cash reserve supports the company’s ongoing projects and provides flexibility as Boyd looks to continue its growth trajectory through both physical expansions and digital advancements.

Smith noted: “We strengthened our growth pipeline, securing an opportunity to develop a casino resort in Norfolk, Virginia, while continuing work on property enhancements nationwide. And we continued our commitment to returning capital to shareholders, repurchasing more than $200 million in shares during the quarter. In all, we are pleased with the ongoing performance of our business and remain focused on enhancing shareholder value.”