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Boyd Gaming Corp (BYD) Q4 2024 Earnings Call Highlights: Record Revenue and Strategic Growth

In This Article:

  • Full-Year Revenue: Over $3.9 billion, setting a record for the company.

  • Full-Year EBITDA: Nearly $1.4 billion.

  • Property Level Operating Margins: Over 40% for the full year.

  • Fourth-Quarter Revenue: Surpassed $1 billion for the first time.

  • Fourth-Quarter EBITDA: Nearly $380 million.

  • Las Vegas Locals Segment Operating Margins: Exceeded 50%.

  • Midwest and South Segment Same-Store Margins: Consistent at 37%.

  • Online Segment Full-Year EBITDA: $76 million after excluding $32 million one-time fees.

  • Managed Business Full-Year EBITDA: $96 million.

  • Stock Repurchase in Fourth Quarter: $203 million.

  • Total 2024 Stock Repurchase: $686 million.

  • Total Capital Returned to Shareholders in 2024: Nearly $750 million.

  • Year-End Total Leverage: Approximately 2.5 times.

  • Capital Expenditures in 2024: $400 million.

  • 2025 Capital Expenditure Estimate: $600 million to $650 million.

Release Date: February 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Boyd Gaming Corp (NYSE:BYD) achieved record revenues of over $3.9 billion in 2024, with companywide EBITDA nearing $1.4 billion.

  • The Las Vegas Locals segment delivered its best year-over-year performance in 2024, with operating margins exceeding 50%.

  • The Online segment generated $76 million in EBITDA for the full year, reflecting growth from market access agreements and online gaming.

  • The Managed business generated $96 million in EBITDA for 2024, driven by management fees from Sky River Casino.

  • Boyd Gaming Corp (NYSE:BYD) returned nearly $750 million in capital to shareholders in 2024 through share repurchases and dividends.

Negative Points

  • Competitive pressures in the Las Vegas market continue to pose challenges, particularly for properties like Orleans and Gold Coast.

  • The Midwest and South segment faced weather-related disruptions in January, similar to the previous year.

  • The Online segment's performance was impacted by lower hold during the NFL season.

  • Boyd Gaming Corp (NYSE:BYD) anticipates continued expense pressures, although they are moderating compared to previous years.

  • The company remains cautious about the retail customer segment, which has shown stability but not significant growth.

Q & A Highlights

Q: Can you provide insights on how you're thinking about your core customers versus retail customers in 2025? A: Our core customer base has been growing consistently, and we expect this trend to continue. For retail customers, outside of Las Vegas, the market has been stable, with flat year-over-year growth. In Las Vegas, retail customer performance has been stabilizing, with year-over-year declines lessening. We anticipate reaching stability in 2025, with potential growth in the second half, depending on broader economic factors.