Red Rock Resorts, the owner of locals casino operator Station Casinos, reported a 16.9% year-over-year increase in revenue for the second quarter, reaching $486.4 million. However, net income fell by 6.8% to $69.8 million from $74.9 million in the same period of 2023.
The regional casino operator reported earnings per share of 59 cents, while analysts expected earnings of 43 cents on sales of $475.81 million.
Adjusted EBITDA rose to $201.7 million, a 15.0% increase from $175.3 million in Q2 2023, the casino company said in a statement. The operator’s stock closed at $60.71 on Tuesday, near its 52-week high of $63.28.
Net revenues from Las Vegas operations were $483.2 million for Q2 2024, an increase of 17.1%, or $70.6 million, from $412.6 million in the year-ago period. Adjusted EBITDA from Las Vegas operations was $223.1 million, an increase of 15.6%, or $30.1 million, from $193.1 million in Q2 2023.
The company’s cash and cash equivalents at June 30 were $136.4 million and total principal amount of debt outstanding at the end of the second quarter was $3.5 billion.
Alongside the report, Red Rock’s Board of Directors declared a cash dividend of $0.25 per Class A common share for Q3 2024, payable on September 30 to stockholders of record as of September 16, 2024.
Before this, Station Holdco will distribute $0.25 per unit, totaling about $27.5 million, with $16.0 million expected for Red Rock Resorts. About $11.5 million is expected to be distributed to the other unit holders of record of Station Holdco.
The company remains bullish on the Durango Casino & Resort in Southwest Las Vegas, Red Rock Resort’s newest property. Officials discussed the expansion plans at the property during Wednesday’s conference call.
The project will add approximately 2,500 square feet to the casino floor, including a new high-limit slot and bar area. The casino will introduce 230 additional slot machines, with 120 allocated to the high-limit room. Additionally, a covered parking garage will be constructed, providing around 2,000 new parking spots.
Despite some cannibalization concerns between Durango and Red Rock, revenue from the new property proved important to the operator in Q2 due to disruptions at Palace Station and Sunset Station, which affected traffic at those properties.
Original article: https://www.yogonet.com/international/noticias/2024/07/24/73272-red-rock-resorts-posts-strong-q2-revenue-growth-amid-earnings-dip
