The past year has marked a historical achievement for Boyd Gaming Corporation as the company recorded its highest revenues and earnings to date, propelled in large measure by the remarkable performance of its online segment. The corporation announced revenues reaching a total of $3.74 billion, a 5.2% rise from the previous year, establishing a new revenue pinnacle. Additionally, Boyd celebrated an upswing in its Adjusted EBITDAR, which ascended to an all-time high of $1.29 billion.
While still drawing most of its financial success from its core casino gaming operations, Boyd observed a modest contraction in this primary revenue source. Nonetheless, other company segments, including room and food and beverage services, displayed incremental year-on-year revenue enhancements.
Keith Smith, the CEO of Boyd Gaming, reflected on the financial results, attributing the triumph to the company’s diversified portfolio, particularly emphasizing the role of online ventures in the company’s financial upscaling. During 2023, Boyd’s online revenue experienced a booming surge of 66.2% to $422.2 million, surpassing all company segments bar casino gaming in revenue provision.
“It was another great year for our company,” declared Smith. “We continue to build on the record performances we have delivered over each of the last several years. 2023 was the third consecutive year we set revenue and EBITDAR records on a full-year basis.”
Smith also spotlighted another remarkable performer under Boyd’s umbrella: the management fees revenue, which soared by a staggering 186.9%. This growth, he noted, along with stable operations from property revenues, played a considerable role in the company’s success.
Dissecting the figures further, Boyd reported a slight decline of 2.3% in gaming revenues, which amounted to $2.61 billion for the year. In contrast, there was a positive turn in both food and beverage revenue, which expanded by 4.5% to $288.4 million, and room revenue, which increased by 5.3% to $199.1 million. The upsurge in management fee revenue reached $76.9 million, with other revenues contributing an additional 2.7% growth to $138.5 million.
Boyd’s regional operations varied in their financial outcomes. The Midwest and South regions saw revenues dip slightly by 1.7% to $2.04 billion. Revenue in Las Vegas Local operations decreased marginally by 0.3% to $928.1 million, whereas Downtown Las Vegas enjoyed a slight uptick of 3.3% to $222.4 million.
On the expenditure front, operating costs for Boyd in 2023 climbed to $2.84 billion, marking a 10.2% increase from the previous year. Gaming costs accounted for the lion’s share at $1.00 billion. Nevertheless, online operations were also significant, amounting to $359.0 million in spending.
The financial data also spotlighted that Boyd encountered $148.9 million in finance-related expenses. Consequently, pre-tax profits for the year settled at $752.9 million, witnessing a 9.2% year-on-year decrease. After accommodating a tax payment of $132.9 million, Boyd posted a net profit of $620.0 million, albeit a slight 2.0% drop from 2022’s figures.
A closer perspective on the financials for the final quarter of 2023 mirrored the annual results, with revenues marking an elevation of 3.4% to $954.4 million. The online segment continued to shine brightly, as fourth-quarter online revenues amplified by 38.4% to $124.1 million.
Operating expenses in the fourth quarter swelled by 19.4% to $799.4 million, and finance costs rose to $41.8 million. Unfortunately, alongside only modest revenue growth, this led to a pre-tax profit plunge of 49.9% to $113.2 million. Boyd ended the quarter after taxes with a net profit of $92.6 million, 46.4% lower than the previous year, and an Adjusted EBITDAR that declined by 1.5% to $328.2 million.
Despite the mixed results in the fourth quarter, Smith maintained an optimistic outlook, heralding the period as “strong” for Boyd and marking a “fitting conclusion” to a year of record-setting financial results.
“Our fourth-quarter and full-year results were driven by our diversified portfolio, consistent core customer trends, and solid returns from our recent property investments,” Smith said, as he looked to the company’s future with expectancy and enthusiasm for maintaining this profitable trajectory.
