Red Rock Resorts experienced a 14% revenue increase for Q1 2022, despite several properties remaining closed.
For the first quarter ended 31 March, Red Rock’s net revenue rose to approximately $402m. This represents a $49m increase from Q1 2021’s $353m. Adjusted EBITDA likewise rose by 14%, from $157m to $179m.
This solid financial performance also saw Red Rock return to profitability on a year-over-year basis. Red Rock reported $92m in net income for the first quarter of 2022, a considerable improvement on the prior-year period’s net loss of $107m.
Its Las Vegas operations were primarily responsible for Q1’s healthy activity. This area generated nearly $400m in net revenue, up 17% from last year’s $343m.
Adjusted EBITDA for Red Rock’s Las Vegas operations increased by an even larger margin, up 21% to almost $195m.
During Red Rock’s Q1 2022 earnings call, its Chief Financial Officer (CFO) Stephen Cootey acknowledged that there had been a drop in visitation, driven in large part by Covid-related concerns.
However, he said that this decline was “more than offset” by guests spending “increased time on device,” as well as “strong spend per visit across our entire portfolio.”
“Moving forward, while we remain vigilant to these trends, we will continue to stay disciplined and focused on executing and investing in our core strategy, including offering new amenities to our guests,” said Cootey.
He added: “While the quarter presented some headwinds, our disciplined approach to running our business, coupled with our unparalleled distribution and scale, allowed the company to enjoy record high EBITDA and EBITDA margin.”
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