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Online growth lifts Boyd Q2 revenues


Boyd Gaming president and CEO Kevin Smith praised the operator’s resilience after online growth drove an uplift in Q2 revenue.

Revenue reached $917.0m in the three months to the end of June. This was up from $894.4m in 2022 thanks to a 49.7% year-on-year increase in online revenue from $56.8 to $85.0m.

After revenue from online operations rocketed by 123.1% to $122.9m in Q1, the segment generated total H1 sales of $207.9m. This was almost double the $111.9m posted in the corresponding period last year.

Online growth

Boyd’s online segment includes its sports betting partnership with FanDuel. It also covers online market access agreements with other third parties and the Boyd Interactive online casino business.

The operator said Q2 online growth was powered by FanDuel’s operations in Ohio and Pennsylvania, as well as Boyd Interactive.

Total revenue in H1 increased year-on-year by just over 7% from $1.755bn in 2022 to $1.881bn. Accordingly, H1 net income was up by 26.6% from $309.7m to $392.2m.

Adjusted earnings before interest, tax, depreciation, amortisation and rent expense associated with master leases (EBITDAR) was $718.5m in H1. This was up from $672.7m in 2022 despite a marginal Q2 year-on-year decline from $353.9m to $351.4m.

“Challenging environment”

“During the second quarter we once again proved our ability to deliver solid results in a challenging environment,” Smith said.

“[This was] thanks to our effective operating model, strong management teams and successful growth initiatives. We maintained our focus on building loyalty… while our operating teams continued to effectively manage expenses throughout the business.”

Smith explained that this led to “strong company-wide margins consistent with recent quarters.”

“Overall results were strengthened by our key growth initiatives, including online gaming and Sky River Casino.”

However, Smith added: “Property operating results were impacted by difficult year-over-year comparisons early in the quarter.” Accordingly, Las Vegas Locals, Downtown Las Vegas and Midwest & South Q2 revenues fell by 2.3%, 1.7% and 3.0% respectively.

Long-term value

In contrast, the Managed & Other segment, including the Sky River Casino, continued to perform ahead of expectations. The segment increased its Q2 sales from $12.4m to $29.2m year-on-year, with H1 revenue up from $23.9m to $61.3m.

“We remain confident in the overall direction of our business and our ability to create long-term value for our shareholders,” said Smith.