Red Rock posts stagnant revenues in Q3 but positive about EBITDA

Red Rock Resorts has published its Q3 financial report, revealing that it has achieved its second-highest adjusted EBITDA in its history.
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Red Rock Resorts has published its Q3 financial report, revealing that it has achieved its second-highest adjusted EBITDA in its history.

For the three-month period ending 30 September, Red Rock recorded total revenues of $414.4m, which is relatively stagnant on Q3 2021’s figure of $414.8m. 

Year-to-date revenues stand at $1.24bn, which represents a 3.6 per cent increase year-over-year compared to the first nine months of 2021 yielding $1.19bn. 

In Q3, Red Rock noted that 68 per cent of revenues were generated through high-margin gaming, which subsequently leads to ‘stable and proven margin performance.’

Adjusted EBITDA for the period was $181.9m, down 0.4 per cent YoY yet, according to management, the second highest performing quarter in company history when considering the $199.9m EBITDA from its Las Vegas operations.

This was achieved with an EBITDA margin of 48.5 per cent, down one per cent YoY but, since reopening post-covid in Q3 2020, Red Rock has achieved an EBITDA margin of over 45 per cent, compared to below 40 per cent prior to closure.

Despite significant profitability from adjusted EBITDA, Red Rock’s net income was slashed by 19 per cent YoY owing to increased interest expenses compared to a year ago. 

Year-to-date EBITDA stands at $5.49bn, slightly down on the same period last year, when YTD EBITDA stood at $5.51bn.

At the end of Q3, the firm had cash and cash equivalents of $101.1m, whilst the total amount of debt outstanding was $2.91bn.

Following the corporate performance, Red Rock’s board of directors have approved a dividend of $0.25 per Class A share for the fourth quarter, payable on December 30.