Land-based casino operator Boyd Gaming said that it expects to complete its acquisition of Pala Interactive in the next “several weeks” and also reported year-on-year growth across revenue and net profit in its third quarter.
Boyd struck a deal to acquire Pala Interactive, the North America-facing igaming software and services supplier majority owned by the Pala Band of Mission Indians, for $170.0m in March this year.
At the time, Boyd said that the purchase would likely complete by the first quarter of 2023, though this closing date has seemingly been brought forward, with the operator expecting to finalise the deal next month.
Boyd previously said that the addition of Pala Interactive to its business would support its ongoing igaming growth strategy. The operator is primarily focused on land-based gaming, but has in recent years made inroads into igaming, particularly within the sports betting market.
Confirmation of the expected closing date came as Boyd also posted financial results for its third quarter, during which it reported a 4.1% year-on-year rise in revenue to $877.3m.
Of this total, $668.0m in revenue for the three months to September 30 was attributed to gaming operations, with $67.8m generated by food and beverage, and $46.7m hotel, while the remaining $94.8m came from other activities.
In terms of geographical performance, Boyd’s operations in the Midwest and South region, including its online sports betting partnerships, accounted for $602.0m of total revenue. A total of $225.8m came from Las Vegas Local activities and $49.5m Downtown Las Vegas.
Operating costs and expenses were 3.2% higher year-on-year at $639.8m, while after also including $34.1m in financial costs, down 24.1% on last year, pre-tax profit was $203.4m, up 14.1% on Q3 of 2021.
Boyd paid $46.4m in taxes during the quarter, which left it with a net profit of $157.0m, a rise of 13.6% on last year.
Adjusted earnings before interest, tax, deprecation, amortisation and rent costs (EBITDAR) was 0.9% lower year-on-year at $337.7m but was still the second highest total in Boyd’s history, second only to the record figure posted in Q3 last year.
Such was the impact of Boyd’s performance in Q3, and positive figures in the first half of the year, that the operator has been able to return almost $500.0m in capital to shareholders so far this financial year.
“This quarter was another solid performance by our company, as we achieved third-quarter EBITDAR that was second only to last year’s record quarterly performance,” Boyd president and chief executive Keith Smith said. “These results were driven by our continued focus on core customers and sustained efficiencies throughout our business, as our operating model is successfully meeting today’s challenges and delivering consistent results.
“Our strong operating performance is producing robust free cash flow, allowing us to return nearly $500.0m in capital to our shareholders so far this year. Overall, we are encouraged by the resiliency of our business, and remain confident in our strategy and our ability to deliver consistent results in the current economic environment.”
