Boyd Gaming Corp ((BYD)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Boyd Gaming Corp’s recent earnings call painted a generally positive picture of the company’s financial health and strategic direction. The call highlighted strong financial performance and strategic investments that are yielding returns, although challenges were noted in specific segments like Downtown Las Vegas. The focus on core customer growth and capital returns to shareholders were emphasized as key strengths.
Record-Breaking Revenue and Growth
Boyd Gaming reported impressive third-quarter revenues exceeding $1 billion, with EBITDAR reaching $322 million. The company maintained consistent margins at 37%, showcasing its ability to grow while keeping costs in check.
Strong Performance in Midwest and South Segment
The Midwest and South segment achieved its strongest third-quarter performance in three years, with revenues rising 3% to $539 million and EBITDAR growing more than 2% over the prior year. This segment’s robust performance underscores its importance to Boyd Gaming’s overall success.
Positive Trends in Las Vegas Locals Segment
The Las Vegas Locals segment showed promising results with revenues of $211 million and EBITDAR of $92 million. Gaming revenue growth was in line with the broader locals market, with year-over-year growth of 2% in both revenues and EBITDAR.
Successful Capital Investments
Boyd Gaming’s capital investments are proving fruitful, with modernization and expansion projects in Las Vegas and other regions delivering strong returns. These strategic investments are expected to support the company’s long-term growth.
Strong Shareholder Returns
In the third quarter, Boyd Gaming returned significant value to shareholders by repurchasing $160 million in stock and paying $15 million in dividends. Year-to-date, the company has returned a total of $637 million to shareholders.
Weakness in Destination Business
Despite overall growth, Boyd Gaming faced challenges in its destination business, particularly at the Orleans, which impacted overall performance. This decline was noted despite growth in core customer play.
Challenges in Downtown Las Vegas
The Downtown Las Vegas segment experienced softness in destination business, with lower hotel revenues and reduced pedestrian traffic along the Fremont Street experience, highlighting an area for potential improvement.
Forward-Looking Guidance
Boyd Gaming’s forward-looking guidance remains optimistic, with increased expectations for the Online segment, projected to reach $60 million in EBITDAR for 2025. The company’s ongoing capital investments, such as the Cadence Crossing and Ameristar St. Charles expansion, are anticipated to enhance long-term growth. Boyd Gaming’s commitment to maintaining low leverage and a strong balance sheet underscores its financial stability.
In summary, Boyd Gaming Corp’s earnings call reflected a positive sentiment, driven by strong financial performance and strategic investments. While challenges exist in specific segments, the company’s focus on core customer growth and shareholder returns remains a priority. The forward-looking guidance suggests continued optimism for future growth and stability.