Boyd Gaming (BYD) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues reached $967.5 million, up 5.5% year-over-year, driven by Online segment and food & beverage growth, while net income fell to $139.8 million due to higher taxes and lower gaming revenue.

• Operating income decreased 6.9% year-over-year to $227.1 million, impacted by lower gaming revenue and higher project development and impairment charges.

• Adjusted EBITDAR for Q2 2024 was $344.2 million, a 2.0% decrease from the prior year, with property-level margins near 41%.

• Nearly $200 million returned to shareholders via share repurchases and dividends in the quarter.

• Opened new land-based Treasure Chest Casino in June, with revenues nearly double prior year since opening.

Financial highlights

• Total revenues for the six months ended June 30, 2024, rose 2.5% year-over-year to $1.93 billion.

• Gaming revenue was $650.8 million, Online revenue $129.9 million, and total revenues $967.5 million for Q2 2024.

• Net income for the six months was $276.3 million, down from $392.2 million in the prior year, reflecting lower operating income and higher tax expense.

• Property-level margins reached nearly 41%, consistent with recent quarters.

• Online segment tax pass-through was $104 million, up from $63 million in Q2 2023.

Outlook and guidance

• Management expects current cash balances, available credit, and operating cash flows to be sufficient for liquidity and capital needs over the next twelve months.

• Online segment full-year EBITDA guidance raised to $65M–$70M; Managed & Other expected to generate ~$90M in EBITDA.

• Capital expenditures for 2024 are estimated at $400–$450 million, including $100 million for hotel renovations and $100 million for growth projects.

• Midwest & South and Las Vegas Locals expected to remain stable for rest of 2024, with potential for growth in 2025.

• Q4 2024 will face tough year-over-year comparisons due to record Q4 2023.