Boyd Gaming reported a 5.5% increase in second-quarter revenues compared to 2023, driven by its online segment. Boyd’s stock rose more than $2 in after-hours trading after closing at $58.63. Its 52-week high is $72.01
Boyd reported second-quarter 2024 revenues of $967.5 million, up from $917 million in the second quarter of 2023. Net income was $139.8 million, or $1.47 per share, for the second quarter compared to $192.5 million, or $1.89 per share, for the year-ago period.
Total adjusted EBITDAR was $344.2 million in the second quarter of 2024 versus $351.4 million in the second quarter of 2023. Adjusted Earnings for the second quarter of 2024 were $150 million, or $1.58 per share, compared to $161.3 million, or $1.58 per share.
“Our company delivered a solid performance in the second quarter, in line with our expectations,” said Keith Smith, president and CEO of Boyd Gaming. “On a segment basis, conditions in the Las Vegas locals market improved from the first quarter and our Las Vegas locals business achieved market-share growth in the quarter. We also produced strong growth in our downtown Las Vegas operations and stable performance in our Midwest and South operations.”
Smith said Boyd maintained operating efficiencies throughout the business, with property margins of nearly 41% during the quarter. In Louisiana, it opened a new land-based casino at Treasure Chest in early June, with strong demand since its opening.
“And we continued our commitment to returning capital to our shareholders, with nearly $200 million in share repurchases and dividend distributions in the second quarter,” Smith said. “In all, we’re pleased with our second-quarter performance and remain confident in our ability to drive long-term growth.”
In the Las Vegas locals segment, while market conditions improved from the first quarter, the Orleans and Gold Coast continued to face competitive pressures similar to the first quarter, Smith said.
“Absent these competitive pressures, the company’s Las Vegas locals properties performed in line with the market,” Smith said. “Results in downtown Las Vegas strengthened on both a sequential and year-over-year basis, with growth in Hawaiian visitation and benefits from our recent property investments. Revenues in the Midwest and South segment were up slightly from prior year, with growth in core-customer play and stability in retail play. Additionally, Midwest and South segment results included contributions from the new land-based casino at Treasure Chest, which opened in early June.”
In the online segment, both revenue and adjusted EBITDAR increased year over year at a double-digit pace during the quarter, as the company continued to benefit from strong growth in FanDuel’s sports-betting operations. Growth in managed business was driven by continued strong performance at Sky River Casino in northern California, Smith said.
Boyd Gaming paid a quarterly cash dividend of $0.17 per share on July 15. As part of its ongoing share-repurchase program, the company repurchased $176 million in shares of its common stock during the second quarter. As of June 30, the company had approximately $545 million remaining under the current share-repurchase authorization.
As of June 30, Boyd Gaming had cash on hand of $280.8 million, and total debt of $3 billion.
The company’s second-quarter 2023 results were favorably impacted by certain one-time tax benefits, with a tax rate of approximately 5% in the second quarter of 2023 compared to a rate of approximately 24% in the current quarter.
