Home Finance Boyd Gaming’s revenue will reach record levels in 2023 thanks to online gaming

Boyd Gaming’s revenue will reach record levels in 2023 thanks to online gaming

by
29 views 4 minutes read


Boyd Gaming announced record revenues and adjusted EBITDAR (EBITDA Adjusted) for the 2023 fiscal year, following significant growth in its online division.

Revenue at Boyd in 2023 amounted to $3.74bn (PS2.96bn/EUR3.47bn), up 5.2% year-on-year and an all-time high. The adjusted EBITDAR reached a new record of $1.29bn.

Boyd reported a small decline in revenue from the core gaming segment. The revenue from food and beverages and rooms both increased year-on-year.

Boyd’s record-breaking revenue was driven by the online business segment. Boyd’s online revenue grew 66.2%, to $422.2m. It was the second highest contributor of revenue behind casino games.

Boyd has had consecutive record-breaking years

Keith Smith, CEO of Boyd, reminisced on his year and praised the success of Boyd’s online business in 2023. The CEO also highlighted that management fee revenue grew by 186.2 percent.

Smith stated that “it was another fantastic year for our business.” We continue to improve on our record-breaking performances over the past few years. The year 2023 marked the third straight full-year in which we achieved revenue and EBITDAR record levels.

Boyd’s revenue has reached record levels for the third consecutive year in 2023.

This performance was a testament to the diversified nature of our portfolio, with growth in both online and managed business. The growth of our online and managed businesses was also accompanied by stable revenue from our real estate operations. We saw our customers’ loyalty continue to grow, as well as growth in the non-gaming sector.

Boyd reports small drop in casino land-based activity

Boyd Casino reported that gaming revenues will drop by 2.3% to $2.61 billion in 2023. Food and beverage revenues rose 4.5%, to $288.4m. Rooms revenue rose 5.3%, to $199.1m.

Smith noted that management fees revenue increased to $76.9m and other revenues also rose 2.7%, to $138.5m. Boyd’s 2023 revenue record was driven by its online business.

Midwest and South had the highest revenue with 2,04bn, a drop of 1.7%. Las Vegas Locals revenue fell 0.3%, to $928.1m. Downtown Las Vegas revenue increased 3.3%, to $222.4m.

Online revenue was reported to be $422.2m. Management fees and other revenues were $123.8m.

Costs rise in 2023

Operating costs reached 2,84 billion dollars in the past year, an increase of 10.2%. The main expense was gaming at $1.00bn. Selling, general, and administrative costs were $389.9m, and online cost $359.0m.

Boyd reported a further $149.9m of finance-related expenses, leaving an estimated pre-tax 2023 profit of $752.9m. This is a 9.2% decrease from the previous year.

Boyd, after paying tax of $132.9m reported a profit net of $620.0m. This is a decrease of 2.0% from 2022.

Net profit for Q4 down by 46.4%

There were similarities between the quarter and the year. The revenue was up by 3.4%, to $954.40m.

Q4 net profit has was down by 46.4% – despite record annual revenue

This was also due to the growth of online revenue, which grew by 38.4%, to $124.1m. The gaming revenue fell 1.0%, to $647.9m. However, there were gains in food and beverages revenue as well as management fees and rooms revenue.

Finance costs increased by $41.8m, while operating expenses rose 19.4% to $799.4m. Pre-tax profits fell by 49.9%, owing to the modest growth in revenue.

Boyd’s Q4 profit was $92.6m after paying $20.62m in taxes, down 46.4% compared to 2022. The adjusted EBITDAR was 1.5% less at $328.2m.

Smith however, was upbeat about the results of Boyd’s quarter. He described it as a “strong” result for Boyd, and “a fitting conclusion” to ANOTHER record-breaking year.

Smith stated that “our fourth quarter and full year results were driven by a diversified portfolio of core customers, consistent trends in our customer base and the solid returns on our recent real estate investments.”

You may also like

About Us

On iGamingWorld, we provide in-depth analysis, the latest news and opinions from famous people of the gaming industry.

Featured Posts

Newsletter