Boyd Gaming Corporation (NYSE: BYD) has reported financial results for the second quarter ending June 30, 2024, highlighting a 5.5% year-on-year increase in revenue to $967.5 million. This uptick was largely driven by significant gains in the company’s online gaming segment.
Financial Performance
Revenue and Net Income
For Q2 2024, Boyd Gaming reported revenue of $967.5 million, reflecting a 5.5% increase from the previous year. Despite the revenue growth, net income for the quarter was $139.8 million, or $1.47 per share, marking a 22% decrease in earnings per share. This decline is primarily due to a one-time tax benefit in the prior year that resulted in a lower tax rate of approximately 5%, compared to 24% in the current quarter.
Adjusted EBITDAR
Total adjusted earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) for Q2 2024 fell by 2%, totaling $344.2 million. Additionally, adjusted earnings were reported at $150 million, or $1.58 per share. These figures suggest that while revenue growth was strong, profitability faced challenges during the quarter.
Segment Performance
Las Vegas Locals Segment
In the Las Vegas Locals segment, Boyd Gaming saw improvements from the first quarter. Properties like The Orleans and Gold Coast faced competitive pressures but performed in line with market expectations. The company’s commitment to providing a top-notch local gaming experience helped counterbalance some of the competitive challenges.
Downtown Las Vegas Operations
Boyd Gaming’s Downtown Las Vegas operations experienced both sequential and year-over-year growth, driven by increased Hawaiian visitation and recent property investments. This niche market focus has continued to yield positive results for the company.
Midwest & South Segment
The Midwest & South segment experienced a slight revenue increase of 0.6%, fueled by growth in core customer play and stable retail play. The opening of the new land-based casino at Treasure Chest in early June contributed positively to this segment’s performance.
Online Segment and Managed & Other Segment
The online segment showed remarkable growth, with a 52.9% increase in revenue, primarily due to the strong performance of FanDuel’s sports-betting operations. Adjusted EBITDAR for the online segment also saw double-digit growth. The Managed & Other segment reported continued strong performance, particularly at Sky River Casino in northern California.
Shareholder Returns and Financial Position
Boyd Gaming paid a quarterly cash dividend of $0.17 per share on July 15, 2024, and repurchased $176 million in shares during Q2 2024. As of June 30, 2024, the company had approximately $545 million remaining under its share repurchase authorization. Boyd Gaming reported cash on hand of $280.8 million and total debt of $3.0 billion at the end of the quarter.
Previous Quarter Comparison
In the first quarter of 2024, Boyd Gaming reported a slight revenue decline of 0.4% and a decrease in net income by 23.1%, influenced by competition in the Las Vegas market and adverse weather conditions in the Midwest and South. The improvement in Q2 2024 revenue indicates a recovery and adaptation to market conditions.
Stock Performance
Boyd Gaming’s shares currently sit at $58.53. Although the stock peaked at a higher price following the Q2 results announcement, it has seen little change over a one-week period.
Conclusion
Boyd Gaming’s Q2 2024 results reflect a solid performance with a notable revenue increase driven by online gaming growth. Despite challenges in profitability, the company’s strategic investments in various segments, particularly online gaming, are paying off. With continued focus on market expansion and enhancing guest experiences, Boyd Gaming remains well-positioned for future growth.
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