BYD - Boyd Gaming: Below Intrinsic Value High Potential For Online Revenue Growth

2024-04-19 04:35:26 ET

Summary

• Boyd Gaming operates in the gaming industry with three main fronts: owned gaming properties, online casino segment, and management agreement with Wilton Rancheria.
• The company focuses on customer loyalty and operational efficiency in its strategies, including personalized loyalty programs and exclusive events.
• Boyd's capital structure has been deleveraging, reducing the risk of insolvency and improving solvency ratios, while the online segment has been driving revenue growth.

Company Overview

Boyd Gaming ( BYD ) is a company that has been operating in the gaming industry for 48 years. The company operates on three distinct fronts:

The first is in the operationalization of wholly owned gaming entertainment properties . These properties are subdivided into three distinct groups (Las Vegas Locals, Downtown Las Vegas and Midwest & South), which serve both to maximize operational efficiency and to meet the specific needs of different markets and customer segments, as these operations, although they maintain a substantial concentration in Nevada, cover ten states.

The second front of activity is in the online casino segment through Boyd Interactive (formerly Pala Interactive, purchased by Boyd in 2022), which has its business model focused on both B2B and B2C in Canada and the United States. This means that Boyd Interactive not only owns its own gaming platform and processes transactions directly to the customer, but also provides solutions to other companies operating in the industry. In December 2023 for example, Boyd Interactive collaborated with Playtech , providing a platform to integrate the company's games and technologies into its online operations.

The third front is the management agreement with Wilton Rancheria for the management of Sky River Casino, located in California....

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