Boyd Gaming declined to guideline out brand-new M&A activity in its post-Q2 incomes call as rumours continue to swirl over a possible joint quote with Flutter Entertainment for Penn Interactive.
Reports over a possible deal emerged earlier this month, with The Deal reporting that a offer might be in the works. Neither Boyd nor Flutter have commented on a possible quote for Penn Entertainment, which would see Boyd take the brick-and-mortar operations and Flutter the digital service, consistingof ESPN Bet.
With Boyd publishing its Q2 and H1 results theotherday (25 July), M&A was a hot subject throughout the revenues call. While Boyd stayed unsurprisingly coy on the subject, CEO Keith Smith did not guideline out some sort of M&A activity.
“If you appearance back over the history of our business, the bulk of our development undoubtedly hasactually come through M&A,” Smith stated. “I think we’ve established a excellent proficiency at it. We understand how to buy residentialorcommercialproperties and business best, and we understand how to extract worth out of these business when they’re part of our portfolio.
“We’ve constantly been ready; it’s not brand-new news to take a tough appearance at chances that emerge. We’ll continue to do that.”
How may Boyd method brand-new M&A chances?
When pressed additional on the subject, Smith stated if Boyd were to pursue chances, it would choose to buy “wholeco” possessions. He stated this is simpler stated than done in the existing market, with most possessions part of an operating or residentialorcommercialproperty business structure. As such, he stated Boyd might be open to a various method.
“We’re definitely prepared to do that,” Smith stated. “We did it with the Pinnacle properties that we purchased anumberof years back. And so, it’s not an obstacle to acquire OpCo possessions; it’s not an obstacle to growing or purchasing extra possessions.
“In terms of monetising our existing genuine estate, I believe we have the exactsame view we’ve constantly had. We have the chance to do it, if there were a deal where it made sense. We takepleasurein and believe we keep terrific versatility by owning our own genuine estate. We believe we can financing in less pricey methods than attempting to monetise our genuine estate.
“So, we believe about all of these things with regard to any M&A chance. And assoonas onceagain, we’re not opposed to looking at OpCo possessions.”
Online drives earnings development in combined Q2
Switching attention to how Boyd efficiency in Q2, earnings in the 3 months to 30 June hit $967.5m (£7