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Higher costs offset revenue growth at Red Rock in Q1


Red Rock Resorts reported an 8.0% increase in revenue for the first quarter of 2023, but a rise in spending led to a short decline in net profit.

Revenue was higher across all operating segments during the three months to March 31, with total revenue for the period amounting to $433.6m.

Of this total, $430.0m came from Red Rock’s Las Vegas operations in Nevada, while the remaining $3.6m was generated from corporate and other activities.

Casino revenue was 3.0% higher year-on-year at $288.2m, while food and beverage revenue climbed 18.9% to $78.1m, room revenue increased 19.3% to $43.9m, other revenue was up 20.3% and management fees were 11.3% higher at $237,000.

However, the revenue increase was accompanied by a rise in operating costs, which were up 9.8% to $296.4m. Spending was higher in all areas, with the exception of depreciation and amortization.

Red Rock also noted $42.5m in interest expense, as well as $899,000 worth of earnings from joint ventures, which meant pre-tax profit for the first quarter reached $95.7m, down 8.9% on the previous year.

The operator paid $10.2m in tax, leaving $85.5m in net profit, a drop of 7.3% on Q1 of 2022. After taking away $40.9m in net profit from non-controlling interests, this resulted in $44.7m net profit attributable to Red Rock, a 7.5% year-on-year drop.

However, Red Rock was able to report an 8.6% increase in adjusted EBITDA to $194.2m for the quarter.