A fall in asset impairment costs and a sharp rise in food and beverage sales helped Las Vegas-based casino operator Red Rock Resorts to a 10.0% increase in consolidated net income for the 2022 financial year.
Reporting its Q4 and full-year figures, Red Rock said that a 2.8% year-on-year increase in net revenue from $1.62bn to $1.66bn had contributed towards a 0.4% rise in adjusted earnings before interest tax, depreciation and amortization (EBITDA) from $743.9m to $741.0m.
Whilst fourth-quarter net income fell by 14.9% to $170.2m from $200.1m, revenues still increased by 0.7% from $422.4m to $425.5m, although sales at the company’s Las Vegas operations slipped by 0.2% from $420.5m to $419.6 over the three-month period.
Over the year, net revenues from Las Vegas operations increased by 3.0% to $1.65bn, while adjusted EBITDA improved by 1.6% to $812.8m.
Company-wide food and beverage sales bolstered the business’ latest figures, with revenue rocketing by 15.4% in 2022 to $283.1m from $245.4m, although this was partly offset by an increase in related operating expenses. Room revenues also increased by 14.3% from $143.9 to $164.5m.
Asset impairment costs fell year-on-year from $177.7m to $80.0m, with the costs largely due to expenses associated with the winding down of operations at the company’s Texas Station, Fiesta Rancho and Fiesta Henderson properties.
However, the company is seeking expansion. There are plans to build a new casino called Durango in Rhodes Ranch in the greater Las Vegas region, while Red Rock owns a further seven additional development sites.
Red Rock-owned Station Casinos already owns and operates Red Rock Casino Resort Spa, Green Valley Ranch Resort Spa Casino, Palace Station Hotel & Casino, Boulder Station Hotel & Casino, Sunset Station Hotel & Casino, Santa Fe Station Hotel & Casino, Wildfire Rancho, Wildfire Boulder, Wildfire Sunset, Wildfire Valley View, Wildfire Anthem and Wildfire Lake Mead.