Boyd Gaming reported its second-best quarter in its history in the second quarter, driven by strong performances across all business segments. Meanwhile, CEO Keith Smith said there was “no compelling reason” to expect business to slow despite macroeconomic factors.
The operator said its year-on-year comparison to the second quarter of 2021 was “challenging” due to benefits received from government stimulus and the lifting of novel coronavirus (Covid-19) restrictions around the same time last year. said.
However, he added that continued focus on core customers and sustainable efficiency of the business as a whole allowed us to achieve year-over-year growth across many core metrics.
Keith Smith, President and Chief Executive Officer of Boyd, said: “Despite inflationary pressures, the company’s operating margin also improved from the first quarter.”
Total revenue for the three months to June 30 was $ 894.5 million, a slight increase from $ 893.6 million in the second quarter of 2021. This is despite his 5.9% decline in game revenue, and Boyd reports growth in rooms, food and beverages and other areas.
Boyd’s Midwest and South casinos generated revenues of $604.1 million, Las Vegas local casino revenues of $236.5 million, and Downtown Las Vegas operations of $53.9 million.
Total operating expenses for the quarter were $649.4 million, up 3.5% year-over-year. did.
Boyd paid $42.1 million in income taxes. This brings net income for the quarter to $146.8 million, up 29.1% from the second quarter of 2021.
Additionally, quarterly adjusted earnings (EBITDAR), excluding interest, taxes, depreciation, amortization and rents, were $353.9 million, down 8.2% from the $385.4 million recorded in the same period last year. did.
Looking at first-half results, total revenue increased 12.5% to $ 1.8 million, with Boyd reporting year-over-year growth in games, guest rooms, food and beverage and other areas.
Midwestern and Southern casinos were the primary source of revenue, generating $1.19 billion during the quarter. Meanwhile, Las Vegas Local his casino revenue reached his $464 million and Downtown Las Vegas revenue he reached $103.4 million.
Group operating costs rose 6.2% to $1.26 billion, while financial and other costs fell by almost half to $96.5 million. His pre-tax income increased 42.6% to $399.6 million, and his net income after paying taxes of $89.9 million was $397 million, up 43.5% year-on-year.
Smith also noted that adjusted EBITDAR for the first half was $692.7 million, up 2.2% from the prior year.
“Overall, we are encouraged by the continued strength of our business and are confident in our strategy and ability to navigate today’s uncertain economic environment,” Smith said.
In a earnings report after the results were announced, Smith also talked about Boyd’s pending acquisition of Pala Interactive.
Boyd agreed to buy the business for $170 million in March, hoping to close the deal by the first quarter of next year. Smith said this is on track, aiming to complete the acquisition by January 1, 2023, although the product offering may not be ready until the middle of the year. I added that there is.
“Our online gaming strategy is based on leveraging our geographic distribution, loyalty programs and customer database to build profitable regional online casino businesses,” Smith said. “Pala provides us with the complete suite of products, technology and expertise necessary to execute on that strategy without the need for additional large investments or acquisitions.
“If we are able to close the transaction and obtain all regulatory approvals by mid-2023, we should have a product ready for customers by mid-2023.”
Looking further ahead, Smith acknowledged the current economic challenges affecting the industry, but said there was “no compelling reason” to believe there would be a major shift in business direction in the near future. .
“Our business remains strong and stable, our management team remains focused, and we are confident in our strategy, operating model and ability to navigate these uncertain times,” he said. rice field.
