Revenue at Boyd in 2023 amounted to $3.74bn (£2.96bn/€3.47bn), up 5.2% year-on-year and an all-time high. Adjusted EBITDAR also edged up to a record $1.29bn.
The core casino gaming business remains the primary source of revenue, but Boyd noted a slight decline in this segment. Room and food and beverage revenue both increased slightly year-on-year.
However, it was the online segment that pushed Boyd to record revenue for the year. Online revenue was up 66.2% to $422.2m, making it the second-highest contributor to revenue at Boyd behind casino gaming.
Consecutive record years for Boyd
Reflecting on the year, Boyd CEO Keith Smith praised the performance of the online business during 2023. He also highlighted the impact of management fees revenue, which rocketed by 186.9%.
“It was another great year for our company,” Smith said. “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.
“This performance is a tribute to our diversified portfolio with strong growth from both our online and managed businesses. This growth was complemented by stable revenues from our property operations as we saw continued strength in play from our core customers and growth in our non-gaming business.”
Boyd notes small decline in land-based casino activity
Breaking down the results in full, Boyd reported a 2.3% drop in gaming revenue to $2.61bn in 2023. However, food and beverage revenue climbed 4.5% to $288.4m and rooms revenue 5.3% to $199.1m.
As noted by Smith, there was an increase in management fee revenue to $76.9m, with other revenue also rising 2.7% to $138.5m. However, it was online that was the star performer for Boyd in 2023 and ultimately what pushed it to record revenue.
As for segmental performances, Midwest and South led the way with $2.04bn in revenue, down 1.7%. Las Vegas Locals revenue slipped 0.3% to $928.1m but Downtown Las Vegas revenue edged up 3.3% to $222.4m.
As reported, online revenue topped $422.2m, with management fees and other revenue at a combined $123.8m.
Higher costs hit bottom line in 2023
Turning to spending, operating costs for the year reached $2.84bn, up 10.2%. Gaming was the main cost at $1.00bn, with selling, general and administrative at $389.9m and online $359.0m.
Boyd noted a further $148.9m in finance-related costs, leaving a pre-tax profit for 2023 of $752.9m, down 9.2% year-on-year.
After paying $132.9m in tax, Boyd reported a net profit of $620.0m, a decline of 2.0% from 2022.
Q4 net profit down 46.4%
Looking to the fourth quarter, there were some similarities with the full year. Revenue was up 3.4% to $954.4m.
Again, this was due to growth in the online segment, with revenue rising 38.4% to $124.1m. Gaming revenue slipped 1.0% to $647.1m but there was growth across food and beverage, rooms and management fees revenue.
Costs-wise, operating expenses increased 19.4% to $799.4m and finance costs were higher at $41.8m. This, coupled with only modest revenue growth, meant pre-tax profit declined 49.9% to $113.2m.
After paying $20.6m in tax, Boyd was left with a Q4 net profit of $92.6m, down 46.4% from 2022. Adjusted EBITDAR for the quarter was also 1.5% lower at $328.2m.
Smith, however, remained upbeat over the quarter, describing it as “strong” for Boyd and a “fitting conclusion” to another record year.
“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.
Original article: https://igamingbusiness.com/finance/full-year-results/online-drives-boyd-gaming-record-revenue-2023/
