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

Josh Hirsberg: John, this is Josh. So I think in the first half of the quarter, what we thought — the reason we thought merited calling it out was that we saw a broader softness across really all customer segments. Now, that reverted in the second half to be more like what we had seen in the quarters leading up to Q4 and continued into January. So, again, that’s what makes it hard to determine if like there’s any relevancy to what happened in the first part of the quarter or not because the business really kind of picked back up with the best part of the quarter being the last week of the year and then just has continued into January. But I think what we saw was very concentrated weakness in the southern part of our portfolio, but also something a little bit more than that just across the entire company in like late October and into November around just a broader customer. I don’t–

Keith Smith: Yes, I think if you’re asking about kind of specific components of the database, whether it be by age or worth segment, no specific shifts that occurred that are worth calling out.

Josh Hirsberg: Right. It kind of picked back up where it left off when you kind of got into the second half of the quarter.

John DeCree: Got it. Understood. I appreciate that. Maybe 1 easy follow-up, Josh. Should we expect Sky River gets going and then kind of your online gaming segment for the year? Any reason to expect any seasonality at Sky River? And then should we kind of assume that the online gaming seasonality would kind of mirror that of the big B2C players kind of in conjunction with the sports schedule?

Josh Hirsberg: Yes, I think that’s right. I mean we have seasonality in the revenue share that we received today. So, in that$40 million that we received this year, there was definitely seasonality, with the fourth quarter being really strong, first quarter typically being strong, and then obviously, third quarter being fairly soft. I would expect, just given you’re just getting a percentage of revenue kind of what’s termed in net revenues for Wilton or Sky River, that there probably won’t be much seasonality to that business, I wouldn’t expect.

John DeCree: Understood. That’s really helpful. Thanks guys and congratulations on the great quarter and year.

Josh Hirsberg: Thank you.

Operator: Thank you. The next question comes from Brandt Montour with Barclays. You may proceed.

Brandt Montour: Hey good evening everybody. Thanks for taking my question. We’ve covered a lot of ground. Just one for me. On the Downtown segment, you noted that the Hawaii business fully recovered. I noticed also that you guys had record margins that look really high compared to all of the last three years. My question is, the full segment, do you think that, that’s fully recovered outside of Hawaii? And then from the margin perspective, should we be looking at prior seasonality but benchmark to this new normal maybe that you guys are operating at currently in the fourth quarter?