Shareholders holding Boyd Gaming Corporation stock at the close of business on December 22 are poised to receive a notable financial boon in the New Year. As the calendar flips to 2024, Boyd has announced a $0.16 per share quarterly dividend, a tangible reward for investors’ confidence and loyalty. The distribution is aligned with Boyd’s financial calendar, with the payment date fixed for January 15, 2024.
The decision to proceed with the dividend distribution reflects Boyd’s current financial health and optimistic outlook. Earlier in October, the company had signalled positive projections – forecasting year-on-year growth that spanned key metrics including revenue, adjusted EBITDA, and net profit, inspiring confidence among investors and market analysts alike.
Examining the company’s financials for the nine months leading up to September 30 reveals a 5.8% increase in revenue, totalling a robust $2.78 billion compared to the previous year’s same period. The revenue stream was diverse but centered on gaming, which contributed an impressive $1.97 billion, with online gaming rising as the second most significant source at $298.2 million. Room rentals added $212.9 million, accompanied by a combined $148.5 million from food and beverage services, while management fees and other activities contributed $54.6 million and $103.6 million, respectively.
Despite increased expenditures, the company’s strategic undertakings manifested in a commendable net profit increase of 13.0%, reaching $527.4 million. Adjusted EBITDAR – a crucial indicator of financial performance – showed a modest yet promising rise of 0.9%, touching the $1.04 billion mark.
Driving this robust year-to-date performance was a stellar third quarter, shaped significantly by the acquisitions and initiatives in Boyd’s online division. A key strategic move was the acquisition of Pala Interactive for $170 million in November 2022, previously held predominantly by the Pala Band of Mission Indians. Now rebranded as Boyd Interactive, the company made substantial progress by reviving the Stardust platform in the Pennsylvania and New Jersey markets.
Q3 group revenue exhibited a 3.0% uplift, soaring to $903.2 million, reinforcing the successful measures adopted throughout the year. While gaming remained the core revenue driver at $641.2 million, the online segment witnessed a remarkable surge of 72.3% to $90.3 million, effectively compensating for any decline in traditional gaming revenue. Additional revenue from food and beverage increased by 4.7% to $71.0 million, room revenues rose by 4.3% to $48.7 million, and there were notable hikes in management fee income and other revenue streams, at 71.6% and 7.7% respectively.
The cost structure, however, did not remain untouched as the expansion of online operations necessitated higher expenditure, leading to a 13.9% contraction in net profit for the quarter, which stood at $135.2 million. Adjusted EBITDAR also witnessed a reduction by 5.0%, settling at $320.8 million.
Even though Q3 faced some challenges, the progress made throughout the year and promising forecasts have put Boyd in a position of strength, with the ability to maintain shareholder dividends. The systematic deployment of capital in growth-oriented avenues like online ventures and the successful integration of acquisitions have positioned Boyd to leverage the lucrative segments of the gaming industry.
The declaration of the quarterly dividend, set against the backdrop of a solid financial year, not only rewards current shareholders but also reinforces the appeal of Boyd Gaming Corporation as a worthy investment in the gambling sector. As the company anticipates further full-year growth, the announced dividend serves as a prelude to what may be yet another successful year in Boyd’s expanding ledger.
