In 2023, Boyd reported record-high revenue of $3.74bn, representing a 5.2% increase from the previous year. Adjusted EBITDAR also reached a record of $1.29bn. The main source of revenue remained the core casino gaming business, although there was a slight decline in this segment. However, room and food and beverage revenue showed slight year-on-year improvements. It was the online segment that significantly contributed to Boyd’s record revenue, with a 66.2% increase to $422.2m.
Boyd had a third consecutive year of record revenue and EBITDAR in 2023. Online business performance was praised by Boyd CEO Keith Smith, along with a notable surge in management fees revenue by 186.9%. The company highlighted its diversified portfolio and strong growth from both online and managed businesses, in addition to stable revenues from its property operations.
Breaking down the results, gaming revenue dropped 2.3% to $2.61bn, while food and beverage revenue increased by 4.5% to $288.4m and room revenue rose 5.3% to $199.1m. Management fee revenue reached $76.9m, and other revenue rose by 2.7% to $138.5m.
Boyd’s top-performing segments in terms of revenue were Midwest and South with $2.04bn, down 1.7%, followed by Downtown Las Vegas with a 3.3% increase to $222.4m. Las Vegas Locals revenue slightly declined by 0.3% to $928.1m. The online segment’s revenue reached $422.2m, and management fees and other revenue combined equated to $123.8m.
In terms of costs, operating costs rose by 10.2% to $2.84bn, with gaming being the primary expense at $1.00bn, followed by selling, general and administrative costs at $389.9m, and online costs at $359.0m. Finance-related costs amounted to $148.9m. This resulted in a pre-tax profit of $752.9m, a 9.2% decrease compared to the previous year. After tax payments of $132.9m, Boyd reported a net profit of $620.0m, a 2.0% decline from 2022.
In the fourth quarter, Boyd’s revenue increased by 3.4% to $954.4m. However, its net profit for the quarter dropped by 46.4%. Similar to the full year, the growth in the online segment contributed to this decrease. Operating expenses increased by 19.4% to $799.4m, and finance costs were higher at $41.8m. As a result, pre-tax profit declined by 49.9% to $113.2m. After tax payments of $20.6m, Boyd’s net profit for the quarter was $92.6m, a 46.4% decrease compared to 2022. The adjusted EBITDAR for the quarter was also 1.5% lower at $328.2m.
Despite the decrease in net profit, Keith Smith expressed positivity about the fourth quarter, describing it as strong and a fitting conclusion to another record year for Boyd. He attributed the company’s success to its diversified portfolio, consistent core customer trends, and solid returns from recent property investments.
