Boyd Gaming enjoyed an uptick in its second quarter, which was a welcomed sign after its weak first quarter earlier this year.
And its casino properties in Missouri remain a source of optimism going forward.
Boyd enjoyed a 5% uptick in revenue in this quarter compared to Q1. During the Q2 earnings call, Boyd’s leaders spoke about that growth as well as some ongoing projects. That included the renovations at its casino in St. Charles, which Boyd President and CEO Keith Smith called an “extremely strong producer.”
Boyd reports revenue of $967M in Q2
Boyd operates two casinos in Missouri: Ameristar Casino Hotel Kansas City and Ameristar Casino Resort Spa St. Charles. Missouri online casinos have not been legalized yet, but online casino play is available at sweepstakes and social casinos.
The company totaled $967.5 million in revenue during the second quarter of 2024, a 5.5% jump from Q1.
Smith said he was “pleased” with how the entire company performed this past quarter. He cited strong numbers from not just the company’s Las Vegas properties but also those in the Midwest and South.
“As a result of these solid performances across all three segments of our operations, second-quarter property revenues were even with the prior year.”
Boyd’s non-gaming side of things improved, too. There was a 6% growth, year-over-year, in their food, beverage, and hotel revenue.
Boyd’s Midwest segment, which includes its two Missouri casinos, fared well during the three months that ended in June, he said.
“During the quarter, play from our core customers continued to grow, while retail play was stable. … We were able to post modest revenue growth in the Midwest and South segments during the quarter.”
Boyd renovation projects represent $100M investment
Smith highlighted some areas in Missouri that he views as “the next projects in our growth pipeline.”
Specifically, he pointed to Ameristar St. Charles.
“In Missouri, we’re beginning an expansion of our meeting and convention space at Ameristar St. Charles, allowing us to capitalize on significant unmet demand for our product there.”
He also touched on the current hotel renovations, believing they’ll be solid additions to the company.
Right now, Ameristar St. Charles features a hotel with 400 suites. The property has a number of dining options and a massive, luxurious spa. The gaming floor itself spans 130,000 square feet, with more than 2,000 gambling options for patrons. It’s one of the state’s largest gaming venues.
Smith said the St. Charles project, along with another renovation in southern Nevada, represents a $100 million investment for the company.
“Being combined with our ongoing hotel renovation at Ameristar, this investment will expand this property’s appeal to new and existing customer segments, driving additional long-term growth at the property following its completion.”
Smith said the project is on track to be finished in the fourth quarter of 2025. The hotel renovations, which started earlier, are set to “wrap up over the next several months.”
“We have plenty of opportunities outside of Nevada properties like Ameristar St. Charles that are extremely strong producers, have extremely strong demand that we can build into.”
Leaders mum on any sort of upcoming company moves
It was surprising that Boyd said nothing during the call about whether it’s looking to acquire Penn Entertainment.
Over the last month, Boyd has been rumored to be interested in buying Penn. Earnings + More reported that Penn was taking an offer from Boyd “seriously.”
The potential move would shake up the casino landscape nationally, but especially in Missouri since Boyd would then own five of the state’s 13 casinos.
Smith didn’t mention the possible sale in the call, but he did say the company will remain aggressive in its pursuits.
“If you look back over the history of our company, the majority of our growth obviously has come through M&A (mergers and acquisitions). … Look, we’ve always been willing, it’s not new news, to take a hard look at opportunities that arise. And so, we’ll continue to do that.”
