Red Rock Resorts returns to net profit in Q1
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.