Boyd Gaming set out plans to expand its online and sports betting segments to drive further growth in the year ahead after reporting record revenue and EBITDAR during its 2022 financial year.
The operator has strengthened its digital offering in recent years to support its traditional land-based offering, and in November last year completed the acquisition of igaming software and services supplier Pala Interactive to further expand this division.
Last year, Boyd also widened its sports betting partnership with FanDuel, going live with both online and retail in Kansas and Ohio. The latest two launches mean the partnership is live in all but one state in Boyd’s Midwest and South region.
Addressing further opportunities, president and chief executive Keith Smith said that the operator will build on its success in 2022 to pursue further online growth, which in turn he said would support its wider, land-based offering.
“We took an important step forward in our online growth strategy with our recent acquisition of Pala Interactive, which gives us the talent and technology to begin building our regional online casino business,” Smith said in an investor call.
“While online casinos are now limited to just a few states, we believe in the long-term potential from igaming. Owning and operating our own igaming operation will allow us to leverage our nationwide portfolio and extensive customer database to create a profitable online casino business.
“On the sports betting side, we remain fully committed to our successful and growing partnership with FanDuel.”
Looking at the full-year results, revenue for the 12 months to December 31 was $3.56bn, up 3.8% from the previous record of $3.70bn in the previous year.
Breaking this down, gaming accounted for $2.67bn of total revenue, though this was 1.1% down on 2021. However, Boyd reported growth in all other areas, with food and beverage revenue up 20.0% to $276.0m, rooms revenue rising 22.7% to $189.1m and other revenue up 48.2% to $415.6m.
In terms of segments, Boyd’s Midwest and South operations drew in $2.41bn in revenue for the year, with Las Vegas Locals revenue at $930.7m and Downtown Las Vegas $215.3m.
Turning to costs and operating expenses were 4.2% higher year-on-year at $2.57bn, with gaming costs surpassing $1.00bn. However, such was the impact of revenue growth that operating profit was 9.0% higher at $981.2m.
Boyd also noted $152.4m in net financial expenses, leaving a pre-tax profit of $828.8m, an increase of 37.2% on the previous year. After paying $189.4m in income tax, this left a net profit for the year of $639.4m, up 37.9% year-on-year.
In addition, adjusted earnings before interest, tax, depreciation, amortization and rent costs (EBITDAR) edged up 1.5% to a record $1.39bn.
“While the opportunities from online and land-based reinvestments are compelling, we also believe there is upside from continued organic growth in our existing operations, particularly in hotel revenues, meeting and convention business, and other non-gaming revenues,” Smith said.
“And while it is difficult to predict the future direction of the economy, we remain confident in our operating model and our team’s proven ability to successfully manage the business.”