Finance

Cost cutting helps Red Rock post Q3 profit

1 minute read
Casino operator Red Rock Resorts said that despite third quarter revenue falling 24.2% year-on-year, l0wer costs helped it post a profit for the period

Net revenue for the three months to September 30 amounted to $353.2m (£272.3m/€301.0m), down from $465.9m in the same period last year.

During the reporting period, Red Rock continued with a phased reopening of its properties, which had been forced to temporarily close in mid-March in line with novel coronavirus (Covid-19) restrictions.

Red Rock, Green Valley Ranch, Santa Fe Station, Boulder Station, Palace Station and Sunset Station, together with its Wildfire properties and the Graton Casino Resort, have all now reopened, but are operating at reduced capacity.

Though casino revenue only edged up 0.7% year-on-year to $239.9m, this total was 217.3% higher than the $75.6m posted in Q2, a period in which most of the operator’s properties were shuttered by the pandemic.

Covid-19 restrictions also weighed on other revenue streams, with food and beverage revenue falling 61.1% to $45.9m. Revenue from hotel rooms dropped to just $22.1m, and other revenue 47.9% to $14.5m, though revenue from management fees climbed 30.9% to $30.9m.

Read the full story on iGB North America.

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