Boyd Gaming to reinstate and increase quarterly dividend amid record-breaking Q4 and full-year revenue performance

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Boyd Gaming has reported record revenue for Q4 and full-year 2021 and has set out plans to reinstate its quarterly dividend to shareholders during Q2 2022.

The US casino operator generated total revenue of $879.8m in Q4, marking its best performing Q4 of all time. The figure was 38.4% ahead of the same period in 2020 and 5.6% higher than Q4 2019.

Property adjusted EBITDAR for the quarter came to $370.6m at a margin of 42.1%. This represents growth of 61.5% on Q4 2020, and 48.0% on Q4 2019.

This EBITDAR figure also marked a fourth-quarter record, with the company reporting its highest ever operating margins across all of its operating segments. 

Boyd said that 24 of its 27 open properties delivered double-digit revenue growth year-on-year during the quarter, while 26 were able to deliver double-digit EBITDAR growth.

After corporate and rent expenses, it declared adjusted EBITDA for Q4 of $321.0m, up 73.9% year-on-year.

After operating expenses, tax, and other expenses, Boyd generated net income of $109.8m during the quarter, up 31.8%.

Looking at full-year 2021, Boyd reported total revenue of $3.37bn, up 54.7% year-on-year, and property adjusted EBITDAR of $1.45bn amid a climb of 113.4%.

After corporate and rent expenses, the operator declared a 148.3% climb in adjusted EBITDA to $1.26bn. 

When factoring in operating and other expenses, the business declared an overall net income of $463.8m in 2021, compared to a $134.7m net loss in 2020.

“As we begin 2022, we remain focused on executing our proven operating strategy, as well as driving incremental growth through strategic reinvestments in our portfolio and the continued expansion of our online business,” said Keith Smith, president and CEO of Boyd Gaming.

“Given the ongoing strength of our business, we are expanding our programme to return capital to our shareholders by reinstating our quarterly dividend. In conjunction with our current share repurchase programme, this action reflects our commitment to a balanced approach to creating long-term shareholder value.”

The quarterly cash dividend of $0.15 per share will be paid on 15 April 2022 to shareholders of record as of 15 March 2022.

This represents an increase from the operator’s previous quarterly dividend of $0.07 per share, which was suspended in March 2020 due to the impact of the Covid-19 pandemic on the company’s retail operations.

In October 2021, Boyd resumed regular share repurchases under a $300m repurchase programme authorised by the board of directors. When combined with amounts remaining under a previous authorisation, the company had total availability of $361m upon resuming its repurchase activity.

During its Q4 conference call, the operator provided some clarity to investors regarding its plans for the future, in particular with regards to iGaming.

Boyd, which owns a 5% stake in and holds a strategic partnership with US market leader FanDuel, went live in partnership with the Flutter Entertainment-owned operator in Louisiana’s newly-launched online betting market last week.

Boyd told investors that the state is likely to account for the lion’s share of its online growth in the coming year. 

However, the operator is also preparing to increase its online footprint in line with the expansion of regulated iGaming across the US. 

While it did not provide a specific strategy or timeframe for its expansion, the operator said it will focus on smaller investments with large returns.

“When you have a low leverage and you’re generating a lot of cash flow, investors are concerned you’re going to go out and do something crazy with that money. But just because we can doesn’t mean we will,” said Smith.

About the author

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Conor Mulheir

Conor entered the gaming industry in 2018 producing high-level live event content for audiences in London, Amsterdam and São Paulo. From 2020, he went on to report news and commission exclusive content for various gaming media brands before joining iGaming NEXT as editor in January 2022.

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