Casino decline pushes Red Rock Q2 revenue down

Red Rock Resorts posted a year-on-year drop in revenue during the second quarter following a decline within its casino business.

The three months to 30 June were a mixed period for the land-based casino operator. Red Rock Q2 group and casino were down, but it experienced growth in other areas and net profit was also up.

Total revenue for the second quarter was $461.1m, down 1.4% from $422.2m in the same period last year.

The main sticking point for Red Rock was its casino business, where revenue dropped 4.0% to $269.5m. In contrast, revenue from food and beverage, rooms and other sources was up year-on-year.

Red Rock’s Las Vegas operations drew $412.6m of all revenue in Q2, down 1.8%. The other $3.6m came from corporate and other sources, an increase of 71.4%.

Reducing spend pushes Red Rock Q2 net profit up

Despite revenue falling, there were plenty of positives for Red Rock in Q2. Total operating spend was down 18.3% to $289.2m, mainly due to last year’s results including a $79.0m asset impairment charge. Without the charge from Q2 2022, operating costs increased by 5.2% year-on-year.

Lower costs offset the revenue drop, meaning operating profit hiked 84.3% to $127.7m, with $754,000 coming from a joint venture.

Red Rock also reported $44.3m in interest expense, leaving $44.3m in pre-tax profit, a rise of 105.7%. The operator paid $8.4m in tax, resulting in a net profit of $74.9m, up 131.2%.

Some $35.4m of this was from non-controlling interests. As such, bottom line net profit was $39.5m, a jump of $151.6m. However adjusted EBITDA declined 7.2% to $175.3m.

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