Boyd Gaming Records Drop in First Quarter Revenue for 2024
Boyd Gaming saw a fall in revenue in its three main land casinos segments in Q1 2024; however, this was offset by growth in its online division so its total revenue fell by just 0.4%.
Boyd Gaming sees physical casinos segment revenue falls, offset by online division growth for Q1 2024.
LISTEN TO THIS ARTICLE:The company reported revenue for the quarter of $960.5 million, just slightly lower than the $964 million in Q1 2023. However, revenue was down in all three land-based segments: Las Vegas Locals, Downtown Las Vegas and Midwest and South. The biggest decline was in the Las Vegas Locals segment with revenue falling 6.1% year-on-year.
Keith Smith, Boyd Gaming CEO and president said that Las Vegas Locals revenue was being compared to a record Q1 in 2023 and he highlighted the opening of the Durango Casino & Resort in December, which “increased competitive pressures”.
Smith also said that poor weather at the start of Q1 will have hit revenue in the Midwest and South business. Overall, he believes that “there were encouraging trends during Q1”.
A Strong Quarter for Online Business
However, Boyd Gaming reported double-digit revenue growth in its online business and EBITDAR for the segment was $20.5 million. Smith said that this was helped by the company’s 5% stake in FanDuel Group.
We are pleased with our online segment’s strong start to the year. In terms of EBITDAR, the segment matched last year’s exceptional results. This is a tribute to FanDuel’s industry-leading position in online sports betting across the country. In addition to these financial contributions, we also continue to benefit from our 5% equity interest in FanDuel. This investment is growing in value with the success of FanDuel across the country, and it remains a valuable strategic and financial asset for our company.
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Examining Q1 Revenue
Looking at the results in more detail, the largest revenue of $634.1 million came from gaming, which was a 4.6% decrease from the previous year. Revenue from food and beverage remained stable at $72.6 million, while room revenue online decreased slightly to $48.9 million. Management fees and other revenues stayed consistent at $22.2 million and $36.4 million, respectively.
The online sector saw a 19% increase in revenue year-on-year to $146.2 million while in the land-based segment, the Midwest and South regions continued to be Boyd Gaming’s top earners, bringing in $500.8 million, a 2.2% fall from the previous year.
Looking at expenses, total operating costs for the quarter were $741.1 million, an increase of 9.1% from the previous year. Costs in the online business grew 23% to $125.5 million, whereas costs in land-based operations remained stable or decreased.
Boyd also reported an additional $41.9 million in finance-related expenses, resulting in a pre-tax profit of $177.5 million, a decrease of 31.5% from 2023. The group paid $41 million in taxes, leading to a net profit of $136.5 million for Q1, down 31.7% from 2023.
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