Boyd Gaming reported a total revenue of $860.7 million (£684.5 million/€809.0 million) for the three months ending on March 31, 2022, marking an increase from $753.7 million in the same period last year.
Keith Smith, the company’s chief executive, expressed optimism about the results, stating, "Our first quarter results were a great start to 2022 as we delivered another remarkable quarterly performance across our business and continued the momentum of a record 2021."
Gaming remained the dominant revenue driver for Boyd in this quarter, generating $668.0 million, reflecting an 8.1% year-over-year growth. Food and beverage revenue rose by 4.4% to $63.7 million, while room revenue saw a significant increase of 63.1%, reaching $42.4 million. Additionally, other revenue surged by 32.6% to $86.6 million.
Regionally, Boyd’s Midwest and South segments recorded a new quarterly record of $583.7 million in revenue. The Las Vegas Locals sector also reached a record of $227.6 million, with the Downtown Las Vegas area contributing $49.5 million.
In terms of expenditures, operating costs and expenses for Q1 increased by 9.0% to $609.7 million. Other net expenses totaled $40.3 million, primarily due to $37.7 million in interest expenses. This resulted in a pre-tax profit of $210.8 million, a 56.9% increase from the previous year. Adjusted earnings before interest, tax, depreciation, amortization, and rent costs (EBITDAR) rose by 15.8%, totaling $338.8 million.
Boyd paid $47.8 million in income tax during the quarter, leading to a net profit of $162.9 million, a 59.4% year-over-year growth.
Toward the end of the quarter, Boyd announced its agreement to acquire Pala Interactive, an igaming software and services supplier mainly owned by the Pala Band of Mission Indians, for $170.0 million. This deal, arranged through its Boyd Interactive Gaming subsidiary, will encompass all Pala Interactive subsidiaries and will be funded in cash. Currently, Pala Interactive offers B2B services across eight states in the U.S. and in Canada, in addition to B2C services in New Jersey and Canada.
Smith characterized the acquisition as a significant step for Boyd, stating it would provide the necessary “technology and expertise to build a leading regional online casino gaming operation."
He added, “In all, the first quarter was an excellent start to 2022, as our proven operating strategy and experienced team continue to create long-term value for our shareholders."
Looking ahead, Smith anticipates a recovery in their meetings and convention business as travel resumes, along with an expansion of non-gaming amenities in downtown Las Vegas. Boyd’s casino operations are set to expand with two projects in progress or planned for 2022. One involves managing Sky River Casino in Northern California, which is currently under construction for the Wilton Rancheria Tribe. The second project aims for a summer commencement of construction on a land-based facility at Treasure Chest in Louisiana, which will replace its existing riverboat casino, scheduled to open in late 2023.
While the acquisition of Pala is intended to directly embrace emerging igaming opportunities, Smith confirmed the company remains committed to its sports betting partnership with FanDuel. He noted, “By leveraging the FanDuel brand and the expertise of one of the nation’s clear leaders in online sports betting, we have built a profitable sports betting business that will contribute approximately $30 million in EBITDAR to our results this year. And through our 5% equity ownership in FanDuel, we have the opportunity to participate in the expansion of sports betting across the country.”
