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 (BYD, Financial) 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 (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 (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.
Q: Could you discuss the flow-through and margin expectations for 2025, and any headwinds or tailwinds you foresee?
A: We expect expense pressures to moderate, although they remain challenging. Revenue growth, particularly from the retail segment, is needed to enhance flow-through. We anticipate managing margins effectively, maintaining consistency across our portfolio, with property-level margins consistently above 40%.
Q: Online performance exceeded expectations. Did NFL hold impact you, or were there other growth elements?
A: Yes, the NFL season's lower hold impacted us, but we also saw growth from market access agreements and our online gaming business, which offset this.
Q: How do you view the legislative landscape for gaming, and where do you see risks or opportunities?
A: It's early in the legislative season, and we're monitoring various gaming bills. It's hard to predict outcomes at this stage, but we're paying close attention to developments.
Q: Regarding capital allocation, how do you evaluate returns on internal investments versus potential M&A opportunities?
A: We balance our investments based on the best returns. We have a pipeline of projects and choose those that generate superior returns. M&A opportunities are evaluated against internal investments and share repurchases, requiring a compelling opportunity to proceed.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
