Boyd Gaming said growth within its igaming operations helped push revenue up year-on-year during the first quarter of 2023, despite its land-based business experiencing a slight decline.
During the quarter, the operator changed its segments to separately report financial results from online and other activities. The online segment includes its sports betting partnership with FanDuel, online market access agreements with other third parties and the Boyd Interactive online casino business.
Online revenue more than doubled over prior year, which Boyd said reflected gains from the recently launched sports betting operations in Ohio and Kansas, as well as continued growth in existing markets and contributions from Boyd Interactive.
“The first quarter was an excellent start to 2023 for our company, as we again demonstrated the strength of our business model and the resilience of our diversified portfolio,” Boyd’s president and chief executive Keith Smith said. “We continued to see increased play from our core customers across the country, as well as strong growth in our non-gaming operations.”
Looking at the Q1 results, total revenue for the entire business reached $964.0m, up 12.0% from $860.7m in the previous year.
Land-based casino gaming remained the primary source of revenue, generating $664.3m in Q1, though this was 0.6% lower than $668.0m last year. Food and beverage revenue climbed 12.4% to $71.6m and room revenue was also up 18.2% to $50.1m.
Online revenue rocketed 123.1% to $122.9m, while revenue management fee revenue was $20.0m and other revenue climbed 12.0% to $35.1m.
In terms of divisional performance, Midwest & South operations generated $512.2m in revenue, with Las Vegas Locals at $240.3m and Downtown Las Vegas $56.6m. Online, which was previously reported as part of the Midwest & South, was $122.9m and managed and other revenue $32.1m.
Turning to costs, operating expenses were 11.4% higher at $679.1m, while financial income was 36.0% lower at $25.8m, due to an increase in interest expenses.
This left pre-tax profit at $259.1m, up 22.9% on the previous year while after paying $59.3m in income tax, Boyd was left with a net profit of $199.7m, a year-on-year rise of 22.4%. In addition, adjusted EBITDAR increased 8.4% to $367.1m.
“Our proven business model and experienced team are delivering strong results for our shareholders, giving us confidence in our continued ability to successfully navigate the current economic environment,” Smith said.