Boyd Gaming Reports 3.2% Revenue Growth to $991.6 Million in Q1 2025

Boyd Gaming Corporation reported its financial results for the first quarter of 2025, revealing total revenues of $991.6 million, a 3.2% increase from $960.5 million in the same period last year. The growth was primarily driven by a significant rise in online revenues, which increased by $23.4 million, largely due to reimbursements of gaming taxes and the acquisition of Resorts Digital Gaming, LLC. Gaming revenues also saw a modest increase of $4.6 million, attributed to a 1.5% rise in slot handle and a 4.8% increase in table game hold. However, net income decreased to $110.9 million from $136.5 million, reflecting a decline in operating income and increased interest expenses.

The company's operating income fell by 8.9% to $199.9 million, impacted by a $21.8 million increase in asset impairment charges, which totaled $32.3 million for the quarter. This was a notable rise from the $10.5 million impairment recorded in the previous year. Despite the revenue growth, the increase in expenses, particularly in the online segment where reimbursements offset revenue, contributed to the decline in profitability. Boyd Gaming's interest expense also rose by $6.1 million, primarily due to a higher average long-term debt balance.

In terms of operational metrics, Boyd Gaming's gaming segment continues to be a significant revenue driver, accounting for approximately 64% of total revenues. The company operates 28 gaming entertainment properties across multiple states, including Nevada, Illinois, and Indiana. The Las Vegas Locals segment reported a slight revenue decline of 1.3%, primarily due to a decrease in room revenues, while the Downtown Las Vegas segment experienced a 7.0% revenue increase, driven by growth in gaming revenues and a focus on the Hawaiian market.

Strategically, Boyd Gaming is pursuing growth opportunities, including a $750 million resort development in Norfolk, Virginia, expected to open a transitional casino in late 2025 and a full resort by late 2027. The company also plans to invest in refurbishments and expansions at existing properties, with an estimated annual capital requirement of approximately $250 million. Boyd Gaming remains committed to maintaining a strong balance sheet and returning capital to shareholders, as evidenced by its ongoing share repurchase program, which has $312.5 million remaining for future buybacks. The company anticipates that its current cash balances, along with available borrowing capacity, will be sufficient to meet its liquidity needs over the next twelve months.