Gaming shows improvement as Red Rock cites continued COVID struggles

Red Rock

Red Rock Resorts has continued to feel the hit of the ongoing global health pandemic throughout the year’s first quarter, as the company continued to execute on its phased reopening program.

Making the comments in the group’s latest financial statement, Q1 2020 saw Red Rock operate its first-to-reopen properties of Red Rock Casino Resort and Spa, Green Valley Ranch, Santa Fe Station, Boulder Station, Palace Station and Sunset Station, together with its Wildfire venues.

Net revenue for the period dropped 6.6 per cent from $377.4m to $352.6m, which the company primarily aligns to the ongoing impacts of the COVID-19 pandemic.

Breaking down this figure further, the group’s casino segment improved 24.8 per cent to $259.9m (2020: $208.2m), with food and beverage and room revenue dropping 46.9 per cent and 45.2 per cent to $46.8m (2020: $88.3m) and $21.9m (2020: $40m), respectively.

Net loss improved from $177.8m in 2020 to $106.6, with adjusted EBITDA coming in at $156.6m, which represents an increase of 110.8 per cent from $74.3m.

Furthermore, the company reports that net revenue from its Las Vegas operations dropped 3.8 per cent from $356.5m to $342.8m, with the aforementioned effects once again cited. Adjusted EBITDA demonstrated a 134.6 per cent increase to $160.7m (2020: $68.5m).

Adjusted EBITDA from Native American operations was $7.6m for the first quarter of 2021, which works out at a 56.8 per cent decrease from $17.6m in the same period of 2020, due to the termination of the management contract of Graton Resort and Casino on February 5, 2021.

Publication of its most recent financial performances comes after the San Manuel Band of Mission Indians and the San Manuel Gaming and Hospitality Authority rolled-out a definitive agreement to acquire Las Vegas’ Palms Casino Resort for $650m.

The transaction, which would see a subsidiary of SMGHA purchase the venue from Red Rock Resorts and its Station Casinos subsidiary, is expected to close later in the year, subject to the receipt of regulatory approvals and other customary closing conditions.