Boyd Gaming confident in ‘resiliency of business’ as revenues rise in Q3
Operator reports 4% growth while teasing close of Pala Interactive acquisition as part of quarterly results
The economic downturn has yet to slow Boyd Gaming, which saw revenues increase 4% in the third quarter of 2022.
Total revenues amounted to $877.3m for the quarter ending September 30, up from $843.1m during the same period last year. Net income totaled $157m, or $1.46 per share.
While adjusted EBITDAR was down slightly – a 1% drop to $337.7m from $340.7m in Q3 2021 – Boyd president and CEO Keith Smith noted the 2021 figure represented a quarterly record and expressed confidence in his company’s resiliency amid the ongoing headwinds.
“These results were driven by our continued focus on core customers and sustained efficiencies throughout our business, as our operating model is successfully meeting today’s challenges and delivering consistent results,” said Smith.
“Our strong operating performance is producing robust free cash flow, allowing us to return nearly $500m in capital to our shareholders so far this year.”
Smith also teased the completion of Boyd’s acquisition of B2B igaming provider Pala Interactive.
The $170m cash deal, announced earlier this year, is expected to close in the coming weeks and will help Boyd take a significant step toward further solidifying itself in the online space.
Boyd’s solid quarter was driven by steady play from its core customers, with the Downtown Las Vegas segment generating revenues of $49.5m, a 17.5% year-over-year (YoY) increase.
The Midwest & South segment also saw revenue growth of 5.7% to $602m.
In addition to the gains from its primary segments, Boyd opened its newest property, Sky River Casino, near Sacramento, California, in August.