Red Rock Resorts, the parent company of South Nevada gaming organisation Station Casinos, has documented continued struggles as the firm maintains the execution of its phased reopening strategy.
Publishing its latest financial report, documenting the firm’s performance during the year’s third quarter, it comes as Red Rock operated its first-to-reopen properties of Red Rock Casino Resort, Green Valley Ranch, Santa Fe Station, Boulder Station, Palace Station and Sunset Station, together with its Wildfire properties and the Graton Casino Resort.
Net revenue during the quarter decreased 24.2 per cent from $465.9m to $353.2m year-on-year, primarily due to the ongoing impacts of the COVID-19 pandemic.
Net income came in at $72m, swinging from a loss of $26.8m for the same period a year earlier, as adjusted EBITDA saw a 44.8 per cent increase to $160.9m (2019: $111.1m).
Documenting its performance across the Las Vegas segment amid the health crisis, revenue dropped 27.2 per cent during the quarter to $320.8m (2019: $440.7m) as adjusted EBITDA finished up at $141.7m, representing a rise of 38.6 per cent from $102.2m.
Adjusted EBITDA from Native American operations was $29.8m for the third quarter of 2020, a 33.9 per cent increase from $22.3m in the same period of 2019.
For the first nine months of the year, to the period ending September 30, 2020, revenue dropped 39.8 per cent to $839m (2019: $1.39bn), net loss plummeted from $13.5m to $224.1m and adjusted EBITDA decreased 41.3 per cent from $371.3m to $217.9m.
This latest financial disclosure follows Red Rock Resorts welcoming a long-awaited California Supreme Court ruling last month, which cleared a major hurdle in the development of a casino near Madera, California, alongside the North Fork Rancheria of Mono Indians.
The court ruled that former Governor Jerry Brown acted within his authority when he concurred in a pair of federal decisions in 2011 that led to the approval of two so-called ‘off-reservation’ tribal gaming projects in Madera and Yuba counties.
The decision will allow the North Fork Rancheria to move forward with the design, financing and construction of its long-awaited project north of the city.