Red Rock Resorts, which owns a majority indirect equity interest in and manages Las Vegas focused gaming and entertainment firm Station Casinos, has seen increasing revenues in its latest financial report thanks to operations within the Nevadan city.
Station Casinos owns and operates 16 properties, including Red Rock Casino Resort Spa, Green Valley Ranch Resort Spa Casino, Palms Casino Resort and Palace Station Hotel and Casino, whilst also owning a 50 per cent interest in Barley’s Casino and Brewing Company, Wildfire Casino and Lanes and The Greens, as well as being the manager of Graton Resort and Casino in Sonoma County, northern California.
Red Rock also has interests in two development projects, which the firm give brief updates into, beginning with its recently finished The Palace Station project, which incurred $188m in costs against its $191m budget, and opened its doors in late 2018.
Furthermore, the company stated that its The Palms redevelopment remains on schedule with an unchanged budget, with the remaining components of phase two expected to be complete in the second quarter of 2019, and phase three in Q3. As of December 31, 2018, the company had incurred approximately $430m in costs against the $690m project.
Revenue for Red Rock during 2018’s final quarter saw a 7.8 per cent increase from $400.3m to $431.5m, boosting full year figures to $1.68bn, a 2.4 per cent boost from $1.64bn, primarily driven by increases in Las Vegas operations, and offset by a decrease in Native American management fees, due to the expiration of its management arrangement alongside Michigan’s Gun Lake Casino last year.
Decreasing Q4 net income of 71.3 per cent from $32.8m to $13.2m “was primarily due to an after-tax decrease in the fair value of derivative instruments of $23.9 million,” as well as a one-time, non-cash adjustment related to a lease obligation regarding the company’s corporate office.
On an FY basis this figure soared to $219.5m (2017: $63.5m), “primarily due to a gain associated with the extinguishment of tax receivable liabilities, as well as a prior year loss associated with the acquisition of the leases at Boulder Station and Texas Station”.
Adjusted EBITDA for the quarter came in at $135.1m, a 10.1 per cent boost on $122.7m, and $509m for the 12 month period, representing a 2.4 per cent increase on $497.2m.
