Boyd Gaming Posts $4.93B in Revenue, Eyes Future Growth
Boyd Gaming announced mid single digit growth for both Q4 and 2024, but is looking to the future.
Key Facts:
- Full year Revenue reached $4.93 Billion, a 5% YOY increase
- Higher Expenses decreased Profit margins by 2 full points
- This Decreased net income to $578 million, down 6.6 YOY
- Earnings Per Share increased slightly over 2% to $6.19
Boyd reported Q4 and end-of-year numbers last week, with more than $1.04 billion in Q4 revenue, representing an almost 5% uptick over last year’s Q4 numbers. It was also the first time Boyd reported over a billion dollars in quarterly revenue.
On paper, they had a huge earnings uptick from 92 million last year to 170 million this year, but that can simply be put down to a non-cash impairment charge the company elected to take in Q4 of 2023.
Year over year earnings were slightly off, with Net Income at $578 million. Revenue, however, was up 5% to $4.93 billion. The company put the difference down to increased costs and labor as profit margins shrank from 17% to 15% for the year.
The company continues to see strong growth in the South. In June 2024, Treasure Chest, the company’s casino in the New Orleans suburb of Kenner, moved from a riverboat into a new, improved, and much larger land-based casino. In hopes of continued growth, they are renovating rooms at their IP property in Biloxi, MS.
They also earned $96 million in EBITDA from managing the Sky River Casino just south of Sacramento, where they continue to spend money on improvements like a new parking garage.
They also touted their online segment in the earnings call, pointing to $76 million in EBITDA just in the fourth quarter and reminding investors that the company does own a 5% stake in one of the brightest online gaming stocks in the country, Fanduel.
Both their Orleans property and Gold Coast casino have suffered from Durango’s opening on the west side of I-15 this past year.
Still, Boyd pointed to continued double-digit home permit growth and over 58 million arrivals at Harry Reid International Airport last year as reasons for continued optimism for their six Las Vegas regional casinos and the Fremont, California Club, and Main Street Station Properties downtown.
Modernization and Growth
In the development pipeline is the new destination resort in Norfolk, where Boyd will spend at least $750 million on a 1500-slot, 50-table game casino. It will also include 200 rooms and eight restaurants, with an opening date towards the end of 2027.
They hope to have a temp casino up and running by the end of 2025, though they were pretty clear that initial EBITDA from such a property would be practically non-existent.
They are making plans to replace their three-decade-old riverboat in Peoria, Illinois, with a new and improved land-based offering, and they will be undertaking a complete renovation of the casino floor at their SunCoast property in Las Vegas.
A little further out the timeline, they foresee their new Cadence Crossing Casino opening in mid-2026 in the Las Vegas community of Cadence.
Lastly, they are expanding their convention center in St. Charles, MO, where they believe its proximity to the St. Louis airport makes for a very high ROI gamble.
Boyd is guiding towards roughly a 2% growth in revenue over the next three years, with significant possible growth after that as some of their larger scale projects come online and hit full stride.
