We also added differentiated casino and entertainment operator, Boyd Gaming Corporation (BYD, Financial), which derives the majority of its revenue from high loyalty and repeat customer base. BYD also owns a minority position in online daily fantasy sportsbook FanDuel. Throughout the pandemic, the company focused on improving operations to permanently lower its expense structure. These initiatives have resulted in margin expansion, strong free cash flow, and accelerated debt repayments. While we expect margins to decline somewhat from currently elevated levels, we believe the market is underestimating the earnings power of the company.
From John Rogers (Trades, Portfolio)' Ariel Fund fourth-quarter 2021 commentary.
