Boyd Interactive beats forecasts to achieve almost $190m in Q4 revenue
Market-access agreements and minority stake in FanDuel contributed to adjusted EBITDAR of $76m after discounting one-time fees
Boyd Interactive, the online division ofland-based casino operator Boyd Gaming, has announced a 52% increase in revenue to $189m for the fourth quarter of 2024.
The firm also revealed online adjusted EBITDAR came in at $44.1m, an increase of 155% on the corresponding period in 2023, while adjusted EBITDAR for the whole of 2024 was $107.6m.
When removing one-time fees, full-year adjusted EBITDAR amounted to $76m, the Las Vegas-based company confirmed.
Management hailed online market-access agreements in various states across the US and its 5% minority position in FanDuel for the digital gains.
Boyd Gaming has held an equity stake in FanDuel since striking a strategic partnership with the operator in 2018, when it was owned by Paddy Power Betfair (now Flutter).
Keith Smith, president and CEO of Boyd Gaming, said the online segment had “once again contributed to companywide growth” with a strong Q4.
“Our online segment generated $76m in EBITDAR for the full year after excluding $32m on one-time fees,” he remarked on an earnings call.
“This performance reflects continued growth from our market-access agreements, primarily with FanDuel, as well as contributions from our nascent online gaming business.”
He added: “We have significant equity in our 5% interest in FanDuel. Across the country, FanDuel is strengthening its position as America’s leading online gaming company, further enhancing the considerable value of our equity stake.”
Barry Jonas of Truist Securities said online had been ahead of expectations, yet he questioned whether Boyd had been affected by the lower-than-expected NFL hold reported by Flutter or if “other elements [were] enough of an offset”.
Smith replied: “I think the answer to that is yes and yes. We certainly were impacted in the online space by the lower hold during NFL season.
“At the same time, we saw good growth in the business from our market-access agreements and our small but growing online gaming business.”
At a group level, Boyd, which turned 50 years old on January 1, reported revenue of $1bn, up from $954m in Q4 2023, while full-year revenue was $3.9bn.
Total adjusted EBITDAR for the fourth quarter was $379.3m, the firm said, compared with $355.5m the prior year. Adjusted EBITDAR for 2024 ended up at $1.4bn.
Boyd Gaming said it had continued a “balanced approach” to capital allocation in 2024, including returning $750m to shareholders and “maintaining the strongest balance sheet in our company’s history.”
In September 2024, Boyd Interactive acquired Resorts Digital, the online arm of Atlantic City’s Resorts Casino that included ResortsCasino.com and MoheganSunCasino.com, for an undisclosed sum.
Shortly after the deal was announced, Resorts Digital CEO Ed Andrewes stepped down following nine years at the helm.
Boyd Gaming, which also snapped up Pala Interactive for $170m in 2022, was rumored last year to be eying up a potential swoop for PENN Entertainment.