Red Rock Resorts sees revenue decline by 1.5% in Q2, but income hikes by 130%

Red Rock Resorts has reported net revenues of $416.1 million for the second quarter of 2023, marking a marginal decline of 1.5% compared to the same period in the previous year. This decrease amounted to $6.1 million when contrasted with the net revenues of $422.2 million recorded in Q2 2022.

However, the financial report also revealed a surge in income. For Q2 2023, Red Rock Resorts reported a net income of $74.9 million, reflecting a substantial increase of 130.9% from the $32.4 million posted in Q2 2022.

All in all, the period was a mixed bag for the casino company, with growth and drops in diverse areas. The Las Vegas-based casino operator also disclosed an Adjusted EBITDA of $175.3 million, which indicates a decline of 7.2% in comparison to the $188.9 million reported in the corresponding period of 2022. This metric is indicative of the company's operational efficiency and profitability.

Delving into specific operational segments, Red Rock Resorts' Las Vegas operations reported net revenues of $412.6 million for Q2 2023. This figure reflects a decrease of 1.8% from the net revenues of $420.1 million seen a year ago. The other $3.6 million in revenue came from corporate and other sources, an increase of 71.4%.

Elsewhere in its Q2 update, Red Rock Resorts' Board of Directors announced a cash dividend of $0.25 per Class A common share for the third quarter of 2023. The dividend will be payable on September 29 to all stockholders of record as of the close of business on September 15. 

The report reveals a decline of 4% in casino revenue, amounting to $269.5 million. This drop, however, was counterbalanced by growth in other segments, including food and beverage, as well as rooms, indicating a diversified revenue stream for the company.

The company managed to achieve an 18.3% reduction in total operating spend, which amounted to $289.2 million. This reduction played a pivotal role in boosting the company's operating profit, which witnessed a substantial increase of 84.3% to reach $127.7 million.

Similarly to the Q2 update, Red Rock Resorts' H1 report also shows a drop in casino revenue (0.4%) to $557.7 million, likewise offset by growth across food and beverage, rooms and other sources. However, the slight casino segment decrease didn't prevent the company from posting $849.8 million in revenue in the first six months of the year, an increase of 3.1% from H1 2022.

In conversation with investors, Red Rock Resorts officials revealed November 20th as the planned opening date for the much-awaited Durango Casino & Resort in Las Vegas Valley. However, the debut is pending regulatory approval, as per Station Casinos, Red Rock's subsidiary that will run the new development. 

The opening date's announcement came hours before the company lighted up Durango’s marquee at an event held Thursday night. The 130-foot-tall LED sign broadcasted the news to drivers on the 215.