Red Rock Resorts’ net revenues declines 0.7%, net income plummets 28.3% in Q3

Industry

Red Rock Resorts has clocked net revenues of $411.6 million for the third quarter of 2023, which marks a decrease of 0.7%, or $2.8 million, from $414.4 million in the same period of 2022.

Net income decreased 28.3%, or $27.0 million, to $68.4 million in Q3 from $95.5 million in the same period of last year. Adjusted EBITDA was $175.2 million during the quarter, a decrease of 3.7%, or $6.7 million, from $181.9 million in Q3 of 2022.

Casino operations accounted for $272.74 million of the roral revenue, down 3.4% from $282.38 million in the same quarter last year. Meanwhile, non-gaming segments, including hotels and food and beverage, experienced notable growth. Income from food and beverage increased from $69.79 million to $72.77 million, while revenue from room bookings grew to $42 million from $39 million.

Net revenues from Las Vegas operations were down to $408.0 million for the third quarter, marking a decrease of 0.9%, or $3.6 million, from $411.6 million in the same period last year. Adjusted EBITDA from Las Vegas operations was $191.4 million, a decrease of 4.3%, or $8.5 million, from $199.9 million in the Q3 of 2022.

The Station Casinos parent’s cash and cash equivalents at September 30 were $122.8 million and the total principal amount of debt outstanding at the end of the third quarter was $3.3 billion.

Red Rock Resorts’ board has declared a cash dividend of $0.25 per Class A common share for the fourth quarter of 2023. The dividend will be payable on December 29, 2023, to all stockholders of record as of the close of business on December 15, 2023.

Along with the Q3 report, Red Rock Resorts officials announced that the opening date of its new Durango Casino and Resort, located in the southwest region of Las Vegas, has been pushed back. The originally planned debut, scheduled for November 20, has now been delayed to December 5, in a move that took industry analysts by surprise.

The announcement was made during the company’s third-quarter earnings conference call. According to Red Rock Resorts’ CFO, Steven Cootey, this adjustment was deemed necessary “to ensure a first-class opening of the property,” as “certain areas” of the resort, which were described as “critical to the opening,” weren’t completed within the anticipated timeframe.

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