Boyd Gaming Corporation, a leading player in the gaming industry, has released its financial results for the fourth quarter and the full year ending on 31 December 2023. The results were driven by a diversified portfolio, consistent core customer trends, and solid returns from recent property investments.
In Q4 2023, Boyd Gaming reported revenues of $954.4 million, marking an increase of approximately 3.4 percent from $922.9 million in the same period in 2022. However, the net income for Q4 2023 was $92.6 million, or $0.94 per share, down approximately 46.4 percent from $172.7 million, or $1.63 per share, for the year-ago period. The Q4 results were impacted by approximately $103.3 million in non-cash, pre-tax goodwill and intangible asset impairment charges.
For the full year 2023, Boyd Gaming reported revenues of $3.7 billion, representing an increase of approximately 3.7 percent from $3.6 billion in 2022. The net income for the full year 2023 was $620.0 million, or $6.12 per share, compared to $639.4 million, or $5.87 per share, for the full year 2022. Similar to Q4, the full-year results were affected by non-cash, pre-tax goodwill and intangible asset impairment charges.
Operational highlights and future prospects
During Q4, Boyd Gaming’s Las Vegas segment maintained consistent revenue and Adjusted EBITDAR performances. The Downtown Las Vegas segment witnessed revenue growth of approximately 1.4 percent, while the Midwest & South segment returned to growth with both revenue and Adjusted EBITDAR increasing by approximately 0.28 percent.
The Online segment also experienced growth following the introduction of sports betting in Ohio in January 2023. Boyd Gaming paid a quarterly cash dividend of $0.16 per share on 15 January 2024. Additionally, the company repurchased $100m in shares of its common stock during Q4 2023, with approximately $326 million remaining under current share repurchase authorisations as of 31 December 2023.
As of 31 December 2023, Boyd Gaming had cash on hand of $304.3 million and total debt of $2.9 billion. In October 2023, Boyd Gaming reported Q3 revenue of $903.2 million, up approximately 2.7 percent from $877.3 million in the same period in 2022. The company’s net income for the third quarter of 2023 was $135.2 million, or $1.34 per share, compared to $157.0 million, or $1.46 per share, for the third quarter of 2022.
Boyd Gaming’s philanthropic initiative in January 2024 saw the company donate over $200,000 to nearly 190 non-profit organisations across 11 states. This gesture underscores the company’s commitment to giving back to the community, even as it continues to navigate the challenges and opportunities in the gaming industry.
Challenges ahead
Boyd faces several challenges that could impact its financial performance such as competition from new market entrants. Increased expenses could also impact performance, with the rise in the cost of living and escalated expenses for wages and utilities.
Non-cash pre-tax impairment charges may also present another challenge. The company had non-cash pre-tax impairment charges of $107.8 million in 2023, a significant increase from $40.8 million in 2022.
Despite these challenges, Boyd Gaming has opportunities for growth.?There is robust demand for sports betting, an upswing in destination business, and pent-up demand for non-gaming amenities that could positively impact the company’s performance.?Emphasis on its core customers and optimization of its cost structure may help counter some of the adverse impacts on its profit margins.
CEO comment
The company’s President and CEO, Keith Smith (photo above), expressed satisfaction with the strong performance in the fourth quarter, which he proudly described as a fitting conclusion to another record year for the company.
With over 30 years of experience in the gaming industry, Smith joined Boyd Gaming Corporation in 1990 and climbed up the corporate ladder. He assumed the role as President in 2005.
Under Smith’s leadership, Boyd Gaming navigated through the global financial crisis and its aftermath, leading the company through a period of rapid growth and diversification.?Smith also spearheaded several successful acquisitions, significantly strengthening the company’s balance sheet.?
He serves on the Board of Directors of regional airline operator SkyWest Inc. and is Chair of the SkyWest Board’s Audit Committee.
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