Boyd Gaming witnessed a slight dip in first-quarter 2024 revenues compared to the previous year, with $960.5m representing a 0.36 per cent decrease from Q1 2023.
The results followed what was a “record 2023” according to CEO Keith Smith, however, a combination of a “severe winter” diminishing the Midwest & South segment and “increased pressures” in Las Vegas led to drops in both revenue and net income.
Publishing its first-quarter financial results for 2024, Boyd Gaming declared revenues of $960.5m, while net income dropped by 31.64 per cent to $136.5m (Q1 2023: $199.7m).
The firm’s adjusted EBITDAR also took a hit, falling by 9.97 per cent from the previous year to $330.5m (2023: $367.1m).
Smith stated: “After a record 2023, the first quarter of 2024 was a challenging start to the year. Severe winter weather had a significant impact on our Midwest & South segment early in the quarter while we also experienced increased competitive pressures in the Las Vegas Locals market.
“However, throughout our business, many of the positive trends from the fourth quarter continued into the new year. By focusing on our disciplined operating and marketing strategies, we have been able to maintain strong operating margins.”
Per segment, gaming revenues declined for consecutive years in Q1, coming in at $634.1m (2023: 664.3m), as did room revenue with $48.9m (2023: $50m), while Boyd’s food & beverage segment saw a slight uptick to $72.6m (2023: $71.6m).
Representing the only segment to publish two figures of growth, online revenues came in at $146.2m, an increase of 19.05 per cent on the previous year’s $122.9m.
This growth was attributed to the firm’s sports betting partnership with FanDuel, heralding the operator as the “nation’s leading online sports betting company”.
Per region, Las Vegas revenues, as aforementioned, suffered throughout the first quarter, witnessing a 6.07 per cent drop to $225.6m (2023: $240.2m). Boyd stated that, in addition to “competitive pressures”, reduced pedestrian traffic in downtown Las Vegas led to this dip.
Meanwhile, the Midwest & South region struggled early-on in the quarter due to the “severe winter”, but did pick up as the months went by and temperatures rose. Midwest & South revenue stood at $500.8m, a 2.22 per cent drop from 2023’s $512.2m.
The operator’s Sky River Casino in northern California helped the firm gain growth in its Management & other segment, showcasing year-over-year increases of 7.17 per cent to $34.4m (2023: $32.1m).
Smith added: “Our significant cash flows and strong balance sheet allow us to continue returning capital to our shareholders through our ongoing share repurchases and quarterly dividend programs. Looking ahead, we remain confident in our ability to successfully navigate the current environment and deliver value to our shareholders.”
The company paid a quarterly cash dividend of $0.17 per share on April 15, and, as part of its share repurchase programme, repurchased $105m in shares of its common stock during Q1.
As of March 31, 2024, the company had approximately $221m remaining under the current share repurchase authorization, while publishing cash on hand of $283.5m with a total debt of $2.9bn.