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BYD NYSE· Boyd Gaming Corp
Earnings report Q3 2023

Boyd Gaming Corporation Reports Mixed Revenue Performance in Latest Quarter

Segments of Revenue

  • Gaming revenues decreased by $54.6 million, or 2.7%, during the nine months ended September 30, 2023, compared to the prior year. This decline was primarily driven by decreases in slot handle, slot win, table game drop, and table game hold. The softness in the retail customer segment, which is more sensitive to changes in the economy, contributed to the decline in gaming revenues.
  • Food & beverage revenues increased by $3.2 million, or 4.7%, during the three months ended September 30, 2023. This growth was supported by increased revenues from nightclub, retail sales, theater tickets, and other venues.
  • Other revenues increased by $2.5 million, or 7.9%, and $7.2 million, or 7.5%, during the three and nine months ended September 30, 2023, respectively. The increase in other revenues was primarily driven by the Las Vegas Locals segment, which experienced growth in tourism and convention business following the lifting of mask mandates and COVID restrictions in February 2022.

Strengths

  • Despite the overall decline in gaming revenues, Boyd Gaming Corporation saw growth in its food & beverage and other revenue segments. This indicates the company's ability to diversify its revenue streams and capitalize on opportunities in different areas of its business.
  • The increase in other revenues, particularly in the Las Vegas Locals segment, can be attributed to the recovery of tourism and convention business following the easing of COVID restrictions. This demonstrates the company's resilience and ability to adapt to changing market conditions.

Challenges

  • The decline in gaming revenues, driven by softness in the retail customer segment, poses a challenge for Boyd Gaming Corporation. The company may need to reassess its strategies to attract and retain retail customers, especially in an uncertain economic environment.
  • The decrease in slot handle, slot win, table game drop, and table game hold highlights the impact of the softness in the retail customer segment on the company's gaming revenues. Boyd Gaming Corporation may need to explore ways to stimulate demand and enhance customer engagement in its gaming operations.

Noteworthy

  • The second quarter of 2022 was particularly strong for Boyd Gaming Corporation, as Las Vegas benefited from the lifting of mask mandates and COVID restrictions. This resulted in a significant boost to the company's gaming revenues during that period.

Summary

Boyd Gaming Corporation reported mixed revenue performance in the latest quarter. While gaming revenues declined due to softness in the retail customer segment, the company experienced growth in its food & beverage and other revenue segments. The increase in other revenues, particularly in the Las Vegas Locals segment, can be attributed to the recovery of tourism and convention business following the easing of COVID restrictions. However, the decline in gaming revenues and related metrics pose challenges for the company, requiring a reassessment of strategies to attract and retain retail customers. Overall, Boyd Gaming Corporation demonstrated resilience and adaptability in navigating the changing market conditions.

Source documents

Form 10-Q  filed on Nov 01, 2023
86 pages scanned

Reference data

Company financials Q3 revenue 954M
Analyst estimates Q3 EPS beat by 11.75%
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