Boyd Gaming Q3 2023 revenue rises 3% as “challenging economic environment” bites
Operator hails impact of diversified business including online division which sees revenue rise 72%
Boyd Gaming has reported a 3% year-on-year (YOY) increase in its group revenue during Q3 2023 to $903.2m, as quarterly results were impacted by declining retail numbers and cost pressures during the period.
The New York Stock Exchange-listed operator reported Q3 2023 net income of $135.2m, down from $157m in Q3 2022, with company total adjusted EBITDAR falling 5% YOY to $320.8m in the same period.
Company adjusted earnings also decreased over Q3, falling to $137.3m from a prior Q3 2022 high of $159.2m.
At an operational level, the biggest revenue increase was reported in Boyd’s online division, which saw a 72% YOY revenue increase to $90.2m in Q3 from a prior year figure of $52.3m.
The online segment benefitted from strong results at FanDuel, of which Boyd Gaming owns a stake, and through the addition of the Pala Interactive business, rebranded as Boyd Interactive, which was acquired by the company in November 2022.
Boyd’s gaming business, which makes up the lion’s share of the group’s operations, reported a 4% YOY revenue drop to $641.1m.
Managed fee revenues rose by 68% YOY to $17.1m, while the group’s other business revenue rose by almost 8% YOY to $34.8m in Q3. The business saw growth in this area through management fees from the Sky River Casino, which opened in August 2022.
Boyd Gaming operational expenditure increased 7% YOY during Q3 to $685.2m, while its operational income slumped 8% to $217.8m.
Despite reporting decreases in several areas, Boyd Gaming CEO and president Keith Smith suggested the results reflected the value of its diversified business model.
“Continued strength in play from our core customers, strong results from Sky River and online gaming, and growth in our non-gaming business all contributed to a solid performance in the quarter,” Smith said.
“However, quarterly results were impacted by declines in play from our retail customers and ongoing cost pressures, both related to the challenging economic environment.
“During the quarter we continued to leverage our strong free cash flow to pursue a balanced capital allocation strategy that is creating significant value for our shareholders.”
The CEO continued: “We demonstrated the growth potential of our property reinvestment initiative, delivering record quarterly results at the Fremont following its recent expansion project.
“And we remain committed to our capital return program, having returned over $1bn to shareholders in the last two years through our ongoing share repurchases and dividends.”