Boyd Gaming’s financial report recorded positive and negative outcomes in its third quarter, which ended on Sept. 30, 2023.
The report showed earnings of $903.2 million, marking a rise from the Q3 2022 figure of $877.3 million. Although the net profit stood at $135.2 million, equivalent to $1.34 per share, as opposed to the 2022 net profit of $157 million, which translated to $1.46 per share.
Boyd Gaming, Q3 2023 performance review
In the property operating divisions of the company, there was an increase in core customer engagement, both sequentially and on a year-over-year basis. Additionally, hotel and food and beverage revenues showed year-over-year growth.
However, this positive performance was partially counterbalanced by a year-over-year decline in retail customer activity. Although, retail customer business volumes have remained stable across all segments since late last year.
The online gambling division of the company experienced a boost owing to the successful operations of FanDuel. And it was further enhanced by the inclusion of Boyd Interactive, which the company acquired in November 2022.
The other businesses saw robust revenue and adjusted EBITDAR growth, primarily driven by management fees generated by Sky River Casino, which commenced operations in August 2022.
President and Chief Executive Officer of Boyd Gaming, Keith Smith, said in a Boyd Gaming press release:
“Our third-quarter results reflect the value of our diversified business model. Continued strength in play from our core customers, strong results from Sky River and online gaming, and growth in our non-gaming business all contributed to a solid performance in the quarter.
However, quarterly results were impacted by declines in play from our retail customers and ongoing cost pressures, both related to the challenging economic environment.”
The total adjusted EBITDAR amounted to $320.8 million, down from $337.7 million in 2022. Adjusted earnings were $137.3 million, equivalent to $1.39 per share.
Although, the total adjusted EBITDAR was $351.4 million in Boyd Gaming’s Q2 of 2023. The adjusted EBITDAR and margin performance were due to higher expenses in labor, utilities, and property insurance costs, resulting in a companywide property-level operating margin of 40%.
As of Sept. 30, Boyd Gaming possessed $269.2 million in available cash and a total debt of $2.9 billion.
Record on shares repurchase
In line with its continuous share repurchase initiative, the company bought back $106 million worth of shares in the third quarter of 2023. And just as Q3 came to an end, there were approximately $426 million remaining under the current authorization for repurchasing shares.
Boyd Gaming distributed a quarterly cash dividend of $0.16 per share on Oct. 15, 2023. Speaking on the shareholders, Smith said:
“During the quarter we continued to leverage our strong free cash flow to pursue a balanced capital allocation strategy that is creating significant value for our shareholders. We demonstrated the growth potential of our property reinvestment initiative, delivering record quarterly results at the Fremont following its recent expansion project.
And we remain committed to our capital return program, having returned over $1 billion to shareholders in the last two years through our ongoing share repurchases and dividends.”
In other news, Boyd Gaming also recently completed the expansion of its Fremont Hotel and Casino in Downtown Las Vegas.