Key points:
- Net revenue increased by 13.7% year-on-year, to $468m
- Las Vegas operations revenue rose 13.9% year-on-year, totalling $464.7m
- Net income decreased by 19%, reaching $55.4m
- A quarterly dividend of $0.25 per share was announced, with the Board increasing the share repurchase program by $100m
For the third quarter of 2024, Red Rock Resorts reported consolidated net revenue of $468m, marking a 13.7% increase year-on-year.
Despite the growth in revenue, net income for the quarter declined by 19% to $55.4m. Adjusted EBITDA reached $182.7m, reflecting a modest 4.3% increase.
Performance in Las Vegas operations
The bulk of Red Rock Resorts’ revenue growth came from its Las Vegas operations, where net revenue reached $464.7m – an increase of 13.9%.
Adjusted EBITDA for Las Vegas operations also rose, totalling $202.6m, up 5.8%. This growth was reportedly attributed to Red Rock’s continued focus on catering to the local Las Vegas market through Station Casinos properties. This includes locations such as Red Rock Resort and Casino, Green Valley Ranch and the new Durango Casino & Resort.
Balance sheet and capital management
As of 30 September 2024, Red Rock Resorts held $117.5m in cash and cash equivalents. The company’s total debt amounted to $3.5bn, unchanged from previous quarters.
Red Rock Resorts’ cash flow allowed the Board to declare a quarterly cash dividend of $0.25 per share, payable on 31 December 2024.
In Q3, Red Rock continued its commitment to shareholder returns, having repurchased shares throughout the quarter under its enhanced buyback program.
Looking ahead
Following recent quarters of growth, Red Rock’s expansion of the Durango Casino & Resort, which opened in December 2023, remains a focal point. Plans to expand Durango’s amenities include a new parking garage and an additional casino area.
Earlier in 2024, Red Rock Resorts reported Q2 results with a 16.9% year-on-year increase in revenue, reaching $486.4m and steady growth from Las Vegas operations.
Las Vegas operations alone generated $483.2m for Q2, marking a 17.1% rise. Q2 Adjusted EBITDA for Las Vegas operations reached $223.1m, a notable increase from $193.1m in Q2 2023. This consistent growth has highlighted the success of Red Rock’s localised business approach, focusing on the greater Las Vegas area through its Station Casinos brand.
These developments are part of the operator's strategy to reinvestment in core markets, while continuing to focus on shareholder returns through dividends and buybacks.
