Operator News
Boyd slips in Q1 with Las Vegas locals market down by six per cent
By Phil - 26 April 2024
Following a record breaking 2023, Boyd Gaming faced a tough start to the New Year with adverse weather conditions and added competition forcing revenues down in its locals markets.
Boyd reported first-quarter 2024 revenues of $960.5m, down from $964m in the first quarter of 2023. The Company reported net income of $136.5m for the first quarter of 2024, compared to $199.7m for the year-ago period. Total Adjusted EBITDAR was $330.5m in the first quarter of 2024 versus $367.1m in the first quarter of 2023.
Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: “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. Additionally, 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.”
During the quarter, Boyd’s Las Vegas Locals segment faced comparisons to record results in the prior year as well as competitive pressures in the Las Vegas Locals market. The Downtown Las Vegas segment also had challenging year-over-year comparisons as well as reduced pedestrian traffic in downtown Las Vegas. Results in the Midwest & South segment were impacted by severe winter weather in January. However, revenue growth resumed in February and March in the Midwest & South segment with increased play from core customers, stable retail play and growth in non-gaming revenues.
The Online segment matched last year’s strong Adjusted EBITDAR performance, as FanDuel continues as the nation’s leading online sports-betting company. Managed & Other benefitted from strong results at Sky River Casino in northern California, which continues to generate year-over-year growth more than 18 months after its opening.
