Boyd Gaming has reported revenues of $967.5 million for the second quarter, a 5.5% increase from $917.0 million in the same period last year. The net income for the quarter was $139.8 million, or $1.47 per share, down from $192.5 million in Q2 2023.
The drop in net income was attributed to the favorable impact of one-time tax benefits in the previous year, resulting in a lower tax rate of 5%, compared to 24% in the current quarter.
Total Adjusted EBITDAR for Q2 2024 was $344.2 million, compared to $351.4 million in the same period last year. Adjusted Earnings stood at $150.0 million, or $1.58 per share, versus $161.3 million, or $1.58 per share, in Q2 2023.
Boyd Gaming saw improved conditions in the Las Vegas Locals market from the first quarter, achieving market share growth. Despite facing competitive pressures at properties like the Orleans and Gold Coast, the segment’s performance aligned with market expectations.
Downtown Las Vegas operations experienced sequential and year-over-year growth, bolstered by increased Hawaiian visitation and recent property investments.
Meanwhile, the Midwest & South segment reported slight revenue growth, driven by increased core customer play and stable retail play. This segment also benefited from the opening of a new land-based casino at Treasure Chest in Louisiana in early June.
For its part, the Online segment posted double-digit year-over-year growth in revenue and Adjusted EBITDAR, supported by strong performance in FanDuel’s sports betting operations. The Managed & Other segment also saw growth, driven by a strong performance from Sky River Casino in northern California.
Sky River Casino
Boyd Gaming continued its capital return program during the period, with $200 million allocated to share repurchases and dividend distributions in Q2 2024. The company paid a quarterly cash dividend of $0.17 per share on July 15, 2024, and repurchased $176 million in shares during the quarter.
Looking ahead, Boyd Gaming is finalizing design work for Cadence Crossing Casino, a new property in the Las Vegas Valley set to replace the aging Jokers Wild Casino. Construction is expected to begin late this year, with completion anticipated by early 2026. The new casino will feature a 10,000-square-foot gaming floor with 450 slot machines, multiple dining options, and live entertainment.
Boyd CEO Keith Smith emphasized the strategic importance of this development in a call with investors: “While we are starting with a modest investment, the property will be designed for future expansion as Cadence grows.” The site has potential for further development, including a hotel and additional casino space.
Despite recent speculation about potential acquisitions, Boyd Gaming maintained its policy of not commenting on rumors. However, Smith did acknowledge the company’s history of strategic acquisitions and its readiness to consider opportunities as they arise.
“We know how to buy properties. I think we’ve developed a great expertise at it,” the CEO said. “We know how to extract value out of these [casinos] once they’re part of our portfolio. We’ve always been willing to take a hard look at opportunities that arise, and we’ll continue to do that.”
His remarks come amid a recent letter from a Los Angeles-based investment firm that suggested Penn Entertainment sell all or some of its 43 casinos in 20 states. A June report had Boyd interested in acquiring M Resort in Henderson, which is operated by Penn. There was no direct mention of Penn on the call.
Boyd Gaming traded higher on Friday after the casino topped Q2 earnings estimates
Original article: https://www.yogonet.com/international/noticias/2024/07/26/73363-boyd-gaming-reports-55-revenue-growth-in-q2-amid-new-casino-project-ma-rumors
