Boyd Gaming Corporation Q1 FY2026 earnings call

Overall, company-wide revenues reached nearly $1 billion, EBITDA was $317 million. Property-level revenues and EBITDA grew year over year led by gaming revenues. Maintained operating efficiencies with property margins over 39%. Midwest and South segment had broad-based growth supported by customers staying closer to home, mild winter weather and capital investments. Nevada operations invested in properties like Cadence Crossing Casino, Suncoast modernization, etc. Downtown Las Vegas trends affected by destination business. Online segment continued growth. Manage Another segment saw Sky River Casino growth. Development projects: $750 million resort in Virginia on track for late 2027 opening, Paradise Casino expansion in Illinois approved, Cadence Crossing has growth opportunities. Balancing capital allocation with share repurchases and dividends.

Midwest and South segment: Revenues grew 4% in the quarter, while EBITDA grew 5% and margins improved to nearly 37%. Gaming revenues also grew driven by increased play from core and retail customers. Nevada operations: Las Vegas local segment suffered from soft destination business and construction disruption at Suncoast. Excluding Orleans and Suncoast, remaining part of the segment had revenues and EBITDA in line with prior year and operating margins exceeded 50%. Downtown Las Vegas: Play from Hawaiian guests and core customers stable, offset by weaker destination business with 11% year-over-year decline in pedestrian traffic on Fremont Street experience. Online segment: Boyd Interactive continued to grow, third-party market access agreements contributions consistent with second half of last year, reiterates EBITDA guidance of $30 to $35 million for the year. Manage Another segment: Sky River Casino had growth since expansion, expects full year EBITDA of 110 to 114 million.

Online segment reiterates EBITDA guidance of $30 to $35 million for the year. Manage Another segment expects full year EBITDA of 110 to 114 million. Virginia resort expected to open late 2027. Paradise Casino expansion project expected to complete late 2028. Maintain share repurchases of $150 million per quarter supplemented by quarterly dividend.

Destination business in Las Vegas being soft, construction disruption at Suncoast, impact of fuel prices on travel, potential changes in third-party market access agreements, competition in the gaming market.

Q: Steve Wisinski asked about when destination traffic might inflect in locals and downtown markets.

A: Keith and Josh responded about destination business impact timeline and easier comparisons in second half.

Q: Barry Jonas asked about why corporate expense was up meaningfully.

A: Josh said it was due to one-time items like charitable contributions timing difference.

Q: Sean Kelly asked about difference in Fremont Street traffic and Strip visitation.

A: Keith responded about Fremont Street traffic being down 11% and convention calendar impact on Strip not reaching downtown.

Q: Ben Chaiken asked about back half expectations in Vegas.

A: Josh explained destination impact continuation, Suncoast disruption timeline and Cadence Crossing's growth timeline.

Q: Dan Pulitzer asked about quarter progression.

A: Keith and Josh talked about cadence of the quarter and how different segments performed.

Q: David Katz asked about M&A boundaries.

A: Keith and Josh discussed M&A criteria like significant impact, stable environments, etc.

Q: John Decree asked about cadence Crossing opening anecdotes.

A: Keith said they were happy with the opening but didn't have specific data.

Q: Brant Montour asked about locals business seasonality.

A: Josh talked about seasonality trends in locals business.

Q: Chad Bainan asked about flow through in Midwest and South and downtown business flight prices.

A: Keith and Josh responded about flow through and monitoring airfares for downtown business.

Q: Trey Bowers asked about healthy local Vegas gaming revenue growth.

A: Keith talked about traditional growth rates and factors affecting it.

Q: Jordan Bender asked about M&A post-COVID and Samstown sale.

A: Keith and Josh discussed M&A synergies expectations and rationale for Samstown sale.

Q: James Hardiman asked about quantifying Suncoast disruption.

A: Josh explained the impact breakdown of Suncoast disruption and destination on locals business.

Q: Steve Pizzella asked about Paradise Casino project vs Treasure Chest.

A: Keith compared the two projects in different markets.