Boyd Gaming has released its financial results for the second quarter ending June 30, 2024, showing a notable increase in revenue but a significant decrease in earnings per share compared to the previous year. The company’s performance highlights several key areas of growth and challenges across its diverse operations.
Revenue Growth
Boyd Gaming reported a 5.5% year-on-year increase in revenue, reaching $967.5 million for Q2 2024. This growth was predominantly driven by a substantial increase in the online segment. The company’s revenue boost is indicative of strong performance in its digital and sports-betting operations.
Net Income and Earnings per Share
Net income for the quarter stood at $139.8 million, translating to $1.47 per share. This represents a 22% decrease in earnings per share compared to the prior year. The reduction in earnings per share can be attributed to a one-time tax benefit reported in the previous year, which resulted in a significantly lower effective tax rate of around 5% at that time. In contrast, the current quarter faced a higher tax rate of 24%.
Adjusted EBITDAR
Adjusted EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent) for Q2 2024 was reported at $344.2 million, reflecting a 2% decrease from the previous year. Adjusted Earnings for the quarter totaled $150 million, or $1.58 per share, showcasing a slight decline in performance relative to the previous period.
Las Vegas Locals
The Las Vegas Locals segment showed improvement compared to the first quarter of 2024. While properties such as The Orleans and Gold Coast faced competitive pressures, their performance was in line with market expectations. The segment’s overall recovery reflects a stabilizing Las Vegas market after a challenging start to the year.
Downtown Las Vegas
Operations in Downtown Las Vegas exhibited both sequential and year-over-year growth. This positive trend was driven by increased visitation from Hawaii and recent investments in property upgrades. The area’s growth highlights a recovery and expansion in this segment, benefiting from strategic enhancements and increased tourism.
Midwest & South
In the Midwest & South segment, revenue grew marginally by 0.6%. The growth was supported by an uptick in core customer play and steady retail performance. The positive contribution from the newly opened land-based casino at Treasure Chest, which began operations in early June, also played a role in the segment’s slight revenue increase.
Online Segment
The online segment experienced significant growth, with revenue increasing by 52.9% year-on-year. This surge was largely due to robust performance in FanDuel’s sports-betting operations. The substantial growth in the online segment reflects Boyd Gaming’s successful expansion in the digital arena and its ability to capitalize on emerging market opportunities.
Managed & Other Segment
The Managed & Other segment also saw positive growth, with continued strong performance from Sky River Casino in northern California. This segment’s growth underscores the company’s ability to maintain and enhance its performance in various operational areas beyond its core casino properties.
Shareholder Returns
During Q2 2024, Boyd Gaming paid a quarterly cash dividend of $0.17 per share on July 15, 2024. Additionally, the company repurchased $176 million worth of shares during the quarter. As of June 30, 2024, Boyd Gaming had approximately $545 million remaining under its share repurchase authorization. The company also reported having $280.8 million in cash on hand and a total debt of $3.0 billion.
Stock Performance
Boyd Gaming’s shares currently trade at $58.53. Following the release of its financial results, the stock reached a higher price but has remained relatively stable over the past week. The stock’s limited fluctuation indicates a cautious market response to the company’s mixed financial performance.
Previous Quarter Overview
In the first quarter of 2024, Boyd Gaming experienced a slight revenue decline of 0.4% and a 23.1% decrease in net income. This decline was impacted by increased competition in the Las Vegas market and adverse weather conditions affecting the Midwest and South regions.
Current Quarter vs. Previous Year
The second quarter of 2024 reveals a complex picture of growth and challenges. While Boyd Gaming achieved significant revenue growth and strong performance in its online segment, the decrease in earnings per share and adjusted EBITDAR highlights underlying financial pressures. The one-time tax benefit from the prior year skews direct comparisons, emphasizing the importance of understanding these results in a broader context.
Boyd Gaming’s Q2 2024 financial results demonstrate the company’s ability to drive revenue growth, particularly in its online segment, while facing challenges in earnings and operational efficiency. The varied performance across its different segments highlights both the opportunities and competitive pressures within the gaming industry. As Boyd Gaming continues to navigate these dynamics, its strategic investments and market adaptations will be crucial in shaping future performance.