Boyd Gaming Corporation (NYSE:BYD) Q4 2022 Earnings Call Transcript

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Josh Hirsberg: I think what I would say is that we feel good relative to where we think our business is going to trend relative to the Street’s consensus just because of the uncertain environment we find ourselves. I think you adequately identified kind of the — where we see opportunities for growth. We get a full year of Wilton. We get kind of some expansion of — on the online side of things. And we’ve got — we’ve had increasing demand for our non-gaming amenities, both hotel and F&B, and we feel like that will continue to be an opportunity as well as depending on how the overall gaming consumer feels and trends for the rest of the year, for 2023, we feel that’s also an opportunity to continue to grow loyalty customer. But I think — and look, I think the other thing that like is easily remiss in our business is we’re making small investments that are generating really good returns that over time, we expect those to accumulate to be something meaningful for us, but we’re not taking big bets.

We’re not committing the company to a large amount of capital in the current environment that we find ourselves. So, all of that gives us some comfort that we’re going to be operating in this level of kind of performance that we’ve been at for the last two years, and that was kind of what we were trying to communicate in our prepared remarks. Hopefully, that makes sense.

Dan Politzer: Yes, that makes sense. And just one last housekeeping one. I think in the past, you’ve talked about segmenting out Sky River and/or the digital stuff. Is that still a consideration?

Josh Hirsberg: Yes. We’re — yes, we’re most likely going to do it in the first quarter, give you some historical perspective as well. We plan to break out online, which will include our revenue share, our tax pass-through and what is to become Boyd Interactive with the acquisition of Pala. And then we’ll have a managed and other, which will include Wilton as well as Lattner Entertainment.

Dan Politzer: Great. Thanks so much.

Josh Hirsberg: Sure.

Operator: Thank you. Our next question comes from David Katz with Jefferies. Your line is open.

David Katz: Hi, afternoon gentlemen and thanks for taking my question. Apologize if you touched on this in the prepared remarks, but I want to make sure as we go through our model, we reflect all the positives you’ve discussed so far, but also just contemplate any points of competition that are out there. Did you mention any? Or could we just touch on those for a moment?

Keith Smith: So, we didn’t talk about competition more broadly. I think as we look at where we’re at today and into 2023, there are probably a couple of areas. So, I think it’s well known that the Horseshoe opened in Lake Charles. It’s a property that had been closed for a while as it was rebuilt from some hurricane damage, opened in December. That obviously competes with our Delta Downs property. It’s been open a little less than 60 days. I haven’t really seen much of an impact, but it is incremental competition. In Indiana at our Blue Chip property, the four wins is opening or expanding a property in South Bend called South Winds, adding a hotel in expanded some casino space last year. We do get some business out of South Bend, so a little bit of incremental competition there.

And then the HHRs in Kentucky have been impacting Belterra Park just outside of Cincinnati, Ohio. They existed there in the second half of 2022. So, we’ll see a little bit of additional impact there in early 2023 from those HHRs. Other than that, no other significant competition throughout the portfolio.

David Katz: Okay, perfect. Thank you very much. Congrats on your quarter.

Keith Smith: Thank you.

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