Boyd Gaming sees record 3Q earnings, credits customer loyalty efforts
The top executive of Boyd Gaming Corp. on Tuesday said the company is using online gaming, new technology tools and sports wagering to drive customer loyalty and further growth after recording record third-quarter earnings.
Keith Smith, president and CEO of the Las Vegas-based company with connections to regional gaming, downtown Las Vegas and the Las Vegas locals market, said company leaders have made fundamental changes to their operating philosophy, sharpening the focus on building loyalty with core customers while executing its business more efficiently.
The company’s results led Boyd’s board of directors to authorize a $300 million share repurchase program.
The changes have resulted in five consecutive quarters of strong performance, including the record results for the quarter that ended Sept. 30.
Boyd on Tuesday reported net income of $138.2 million, $1.21 a share, on revenue of $843.1 million for the quarter that ended Sept. 30. That compared with income of $38.1 million, 33 cents a share, on revenue of $652.2 million in the same quarter a year ago.
Boyd shattered cash flow records in each of the company’s three operating segments: midwest and south, downtown Las Vegas and Las Vegas locals.
“We are continuing to implement initiatives and technology to enhance customer convenience, build loyalty, streamline processes and reinforce our operating efficiency,” Smith said in Tuesday’s earnings conference call with investors.
Smith cited Boyd Pay, the company’s cashless technology, now operational at 11 properties in four states. Initially established as a slot machine loyalty product, Boyd Pay will soon be introduced to a majority of the company’s Las Vegas property restaurants and is being field-tested in Nevada Gaming Control Board-monitored trials in table games.
“Our goal is to create a tool that will make it easier for guests to make wagers and pay for non-gaming amenities right from their smartphones,” Smith said.
He said Boyd Pay would be available at every property by next year.
Smith said tourism levels are gradually returning to pre-pandemic levels and the Hawaii market — extremely important to Boyd because of its historic marketing connections with the islands — is starting to come back.
Boyd is using online gaming and online casinos as a strategic growth initiative.
“We view online gaming and online casinos in particular as a strategic growth opportunity for our company,” Smith told investors. “With gaming operations across 10 states and a strong player loyalty program, we have the foundation to build a robust digital complement to our land-based casino operations.”
Smith also said sports betting is continuing to drive growth and loyalty. Boyd partners with daily fantasy game provider FanDuel in six of the company’s nine regional states.
Boyd Gaming shares, traded on the New York Stock Exchange, were up 26 cents, 0.4 percent, in average trading Tuesday.
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.