Home > Finance > Red Rock Resorts returns to net profit in Q1

Red Rock Resorts returns to net profit in Q1

| By Robert Fletcher
US casino operator Red Rock Resorts revealed it was able to return to net profit during the first quarter of its 2022 financial year, while revenue also increased year-on-year.

Revenue in the three months to 31 March 2022 amounted to $401.6m (£320.9m/€381.6m), up 13.9% from $352.6m in the same period last year.

Casino revenue increased 7.8% year-on-year to $279.8m, while food and beverage revenue climbed 39.5% to $65.4m, room revenue jumped 68.0% to $36.8m and other revenue was up 23.1% to $19.2m. Red Rock also noted $213,000 in revenue from management fees.

Almost all revenue came from Red Rock’s operations in Las Vegas, Nevada, with revenue here reaching $399.7m. The other $1.9m in revenue was derived from corporate and other sources.

Costs were higher across the board, with the exception of depreciation and amortisation, which declined 38.5% to $33.4m.

However, total operating costs and expenses were 36.1% lower at $270.8m, with Red Rock noting that its first quarter of 2021 included an asset impairment of $169.7m, whereas this year it did not record any such charges.

This left an operating profit of $130.8m, in contrast to a $71.2m loss in Q1 last year, while $844,000 in earnings from joint ventures increased this total to $131.6m.

Red Rock also noted $26.7m in interest expenses, meaning pre-tax profit for the quarter stood at $105.0m, compared to a loss of $106.3m at the same point in 2021.

The operator paid $12.7m in income tax, which left a net profit of $92.2m, in contrast to the $106.6m loss posted last year. Red Rock said $43.9m of this was attributable to its non-controlling interests, meaning net profit attributable to Red Rock was $48.3m, which was still a significant improvement in the $64.8m loss in 2021.

In addition, Red Rock said that adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was 14.1% higher at $178.7m.

  • Regions:
  • US

Subscribe to the iGaming newsletter