American gaming and hospitality company Boyd Gaming has released its financial results for the second quarter of 2024, ending June 30. The company reported strong revenue growth, primarily driven by its online gambling segment.
For Q2 2024, Boyd Gaming's revenue climbed to $967.5 million, marking an increase of approximately 5.5% from the $917 million recorded during the same period in 2023. Adjusted EBITDAR saw a slight dip from $351.4 million to $344.2 million, and adjusted earnings also saw a decrease from $161.3 million in Q2 2023 to $150 million in the most recent quarter.
Net income dropped by roughly 27.4% year-on-year to $139.8 million, compared to $192.5 million in Q2 2023. However, last year's results were favored by one-time tax benefits, with the tax rate at roughly 5%, while the tax rate for Q2 2024 was 24%.
“Our company delivered a solid performance in the second quarter, in-line with our expectations,” said Keith Smith, president and CEO of Boyd Gaming, in the press release. “We are pleased with our second-quarter performance, and remain confident in our ability to drive long-term growth across our business.”
Online segment drives growth
Boyd Gaming’s online segment was the standout performer during Q2, with both revenue and adjusted EBITDAR up year-over-year. Revenue from the online segment soared by 52.9%, climbing from $85 million to $129.9 million. Similarly, adjusted EBITDAR for this segment rose by 27.3%, increasing from $13.4 million to $17.1 million.
However, the "Las Vegas Locals" segment saw a slight 2.6% revenue decline, from $230.9 million to $225.1 million, as both Gold Coast Hotel and Casino and The Orleans Hotel and Casino continued to face competitive pressures. Still, this segment managed to achieve market share growth during Q2.
All other segments also saw year-on-year revenue growth, including "Managed and Other" (up 13.4%), "Downtown Las Vegas" (up 8.9%), and "Midwest & South" (up 0.6%), the latter of which included contributions from Treasure Chest Casino, which opened in early June.
“On a segment basis, conditions in the Las Vegas Locals market improved from the first quarter and our Las Vegas Locals business achieved market share growth in the quarter. We also produced strong growth in our Downtown Las Vegas operations and stable performance in our Midwest & South operations,” said Smith. “In Louisiana, we opened our new land-based casino at Treasure Chest in early June, with strong demand since its opening.”
FanDuel’s impact
The company’s 5% ownership stake in FanDuel once again bolstered online growth. Established in 2018, this partnership sees FanDuel operate its retail and online sports betting in Boyd’s casinos outside of Nevada, including Belterra Casino Resort in Indiana, the Diamond Jo Casinos in Iowa, and others.
Boyd Gaming has been around since 1975 and owns and operates 28 gambling properties across 10 states. Last month, rumors circulated that the company is looking to acquire PENN Entertainment, which operates 40 properties across 20 states. The potential deal raises questions about PENN’s 10-year partnership with Disney to operate ESPN BET, signed last August.
