Boyd Gaming Reports Record Revenue and Adjusted EBITDAR in 2023
Boyd Gaming, a leading casino operator, has announced record revenue and adjusted EBITDAR for the financial year 2023. The company experienced significant growth in its online division, contributing to the record-breaking results.
Revenue Soars to All-Time High
Boyd Gaming’s revenue for 2023 reached an all-time high of $3.74 billion, marking a 5.2% increase compared to the previous year. The core casino gaming business remained the primary source of revenue, although there was a slight decline in this segment. On the other hand, room and food and beverage revenue both saw modest increases year-on-year.
Online Segment Drives Record Revenue
The standout performer for Boyd Gaming in 2023 was its online segment, which saw a staggering 66.2% increase in revenue, totaling $422.2 million. This made it the second-highest contributor to revenue, just behind the casino gaming division.
CEO Keith Smith Praised Online Business Performance
Reflecting on the year, Boyd Gaming CEO Keith Smith praised the outstanding performance of the online business. He also highlighted the significant growth in management fees revenue, which skyrocketed by 186.9%.
Small Decline in Land-Based Casino Activity
While Boyd Gaming experienced a decline of 2.3% in gaming revenue, other segments saw positive growth. Food and beverage revenue increased by 4.5% to $288.4 million, and rooms revenue rose by 5.3% to $199.1 million. Management fee revenue also saw an increase, reaching $76.9 million.
Midwest and South Lead Revenue Performance
In terms of regional performance, Boyd Gaming’s Midwest and South regions led the way with revenue totaling $2.04 billion. Las Vegas Locals revenue slipped slightly by 0.3% to $928.1 million, while Downtown Las Vegas revenue saw a 3.3% increase to $222.4 million. The online segment generated $422.2 million in revenue, with management fees and other revenue contributing an additional $123.8 million.
Higher Costs Impact Bottom Line
Although Boyd Gaming achieved record revenue, higher operating costs of $2.84 billion, a 10.2% increase from the previous year, impacted the bottom line. Gaming costs accounted for $1.00 billion, while selling, general, and administrative costs reached $389.9 million. The online segment also incurred costs amounting to $359.0 million. Finance-related costs amounted to $148.9 million, resulting in a pre-tax profit of $752.9 million, down 9.2% year-on-year.
Q4 Net Profit Declines Despite Record Annual Revenue
In the fourth quarter, Boyd Gaming experienced a 3.4% increase in revenue to $954.4 million. However, the net profit for this period declined by 46.4%. The growth was driven by the online segment, with revenue surging by 38.4% to $124.1 million. Gaming revenue decreased slightly by 1.0%, while food and beverage, rooms, and management fees revenue all saw growth. Operating expenses rose by 19.4%, resulting in a decrease in pre-tax profit by 49.9% to $113.2 million.
Boyd Gaming CEO Keith Smith remained optimistic about the quarter, describing it as “strong” and a “fitting conclusion” to another record-breaking year. He attributed the impressive financial performance to the company’s diversified portfolio, consistent core customer trends, and solid returns from recent property investments.
Analyst comment
Positive news. Market will continue to grow, with the online segment driving revenue and contributing to record-breaking results. Despite higher operating costs, Boyd Gaming remains optimistic about the future due to a diversified portfolio and consistent customer trends.
