Boyd Gaming has built upon its substantial 2022 momentum, capitalizing on its diverse and resilient portfolio. Successful launches in new jurisdictions and the further development of existing markets were instrumental in maintaining revenue and EBITDAR growth. Such stellar results put the operator in a comfortable position to consolidate its market position and remain vigilant for new opportunities.
Most Verticals Enjoyed Steady Growth
Q1 revenue of $964 million significantly exceeded Wall Street’s prior estimations of $885.5 million. Such impressive growth marks a 12% year-on-year increase, with other relevant metrics also remaining positive. Despite operating expenses rising by 11.4% and financial income dropping 36% to $25.8 million, the net profit of $199.7 million still marked a 22.4% increase from Q1 2022.
Boyd Gaming’s land-based operations generated $664.3 million in Q1, dropping slightly compared to last year’s $668 million. However, a massive 123.1% increase in online revenue and positive results across food, beverage, and room revenue more than made up for the decline. Boyd president and CEO Keith Smith was pleased with the results and remained optimistic about the company’s prospects.
Our proven business model and experienced team… (give) us confidence in our continued ability to successfully navigate the current economic environment.
Keith Smith, Boyd Gaming president and CEO
According to Smith, the operator’s Q1 results were a testament to the value of its diverse and resilient portfolio and flexible business model. The CEO highlighted the importance of a core customer base and the ability to capitalize on the various non-gaming operations. Boyd’s ongoing success also reflected positively on its share price, delivering quarterly earnings of $1.71 per share.
2023 Should Present Many New Opportunities
The quarterly results may indicate the potential shift in priorities at Boyd. While the company still predominantly profits from its land-based operations, it is paying increasing attention to the booming online sector. A sports betting partnership with FanDuel and its Boyd Interactive iGaming business offers a stable foundation to pursue new growth avenues.
Boyd’s recent expansion into Ohio and Kansas significantly contributed to its Q1 results, as it secured a substantial market share in these lucrative markets. Significant consumer demand for gambling and hospitality services should present further strategic investment opportunities, allowing the company to maintain its leadership position in this highly competitive industry.