Red Rock Resorts has reported Q4 and full-year revenue increases amid falling net income as the firm publishes its latest financial report.
On a quarterly basis net revenue increased 6.8 per cent to $460.8m (2018: 431.5m), primarily due to an increase in Las Vegas operations, led by an rise in net revenues at the Palms Casino Resort.
Net income during the period fell to $6.8m, representing a decrease of 48.1 per cent, from $13.2m for the same period of 2018. Red Rock asserts that this is due to a one-time charge related to company’s purchase of its formerly leased corporate office building and the extinguishment of the lease financing obligation related thereto.
Adjusted EBITDA came in at $137.6m for the fourth quarter, an increase of 1.8 per cent from $135.1m, which the firm puts down to increases in Las Vegas operations other than the Palms, partially offset by a decrease in adjusted EBITDA at the aforementioned property.
For the full year, net revenues were $1.86bn in 2019, an increase of 10.4 per cent from $1.68bn, due to a $170.8m increase in Las Vegas operations, led by an increase in net revenues at the Palms.
Net loss was $6.7m in 2019, compared to net income of $219.5m is year earlier due to a decrease in the fair value of derivative instruments, an increase in write downs and other charges including the termination of certain artist performance agreements and employment arrangements at the Palms and higher depreciation and amortisation relating to the Palms redevelopment project. The change from the prior year was also impacted by a gain recognised in 2018 associated with the extinguishment of a tax receivable liability.
Adjusted EBITDA was flat at $509m, primarily the result of an increase in Las Vegas operations other than the Palms which offset losses felt at the previously mentioned entity.
Net revenues from Las Vegas operations were $437.9m for the fourth quarter of 2019, an increase of 6.9 per cent from $409.5m. Adjusted EBITDA was $125.5m during the period, a rise of 3.7 per cent from $121m.
Adjusted EBITDA from native American operations was $19.9m for the fourth quarter of 2019, a 3.9 per cent increase from $19.1m year-on-year due to increased management fees generated under the Graton Resort management agreement.