US – Strong Downtown and Las Vegas locals’ market drives second highest quarterly EBIDTA in Boyd’s historyBy Phil - 27 July 2022
Boyd Gaming continued its bounce back in the second quarter ended June 30, 2022, with its second highest quarterly adjusted earnings in history fueled by downtown Las Vegas and the locals’ market.
Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: “We delivered another strong quarter, with quarterly Adjusted EBITDAR that was second only to last year’s record results. The second quarter of 2021 was a challenging comparison due to benefits from government stimulus and the lifting of COVID restrictions. This quarter’s excellent results were driven by a continued focus on our core customer and sustained efficiencies throughout our business. Our operating trends remain strong, as play from core customer segments grew both year-over-year and sequentially from the first quarter of 2022. We also improved Companywide operating margins from the first quarter despite inflationary pressures. Overall, we are encouraged by the continued strength of our business, and remain confident in our strategy and our ability to navigate today’s uncertain economic environment.”
Boyd Gaming reported second-quarter 2022 revenues of $894.5m, up slightly from $893.6m in the second quarter of 2021. The company reported net income of $146.8m, or $1.33 per share, for the second quarter of 2022, compared to $113.7m, or $1.00 per share, for the year-ago period.
The Las Vegas Locals segment achieved margins above 50 per cent for the fifth straight quarter. On a sequential basis compared to the first quarter of 2022, revenue increased four per cent in the Las Vegas Locals segment while Adjusted EBITDAR rose nearly six per cent. Revenues grew nine per cent sequentially in Downtown Las Vegas as the segment set a quarterly Adjusted EBITDAR record and operating margins exceeded 40 per cent for the first time. The company’s Midwest & South segment continued its steady performance, posting its strongest revenue and Adjusted EBITDAR performance since the second quarter of 2021 as operating margins remained steady at 38 per cent.
Josh Hirsberg, executive vice president, chief financial officer, and treasurer, said: “This is a different environment than what drove the Great Recession in the late 2000s. The business today feels very different than pre-COVID, in the sense of who the customer is, our focus on that customer, and how we’re marketing to that consumer,” Hirsberg said. “Insightful for us is our core customer (base), that we’re reinvesting in, continues to be very stable and grow. Driving our business and overall performance is a focus on a very loyal and high-quality customer.”
The company plans to open Sky River Casino near Sacramento, California in early September 2022. The company has a seven-year management agreement to operate Sky River on behalf of the Wilton Rancheria Tribe.
Caption: the future Sky River Casino