Red Rock Resorts has unveiled its financial performance for the third quarter of 2024, ending September 30th, demonstrating a strong revenue growth trajectory while experiencing a decline in net income compared to the same period last year.
The company reported consolidated net revenue of $468.0 million for Q3 2024, reflecting a notable 13.7% increase from the $411.6 million recorded in Q3 2023. This positive revenue trend is a testament to the company’s strategic initiatives and continued success in the gaming and hospitality industry. However, despite this robust revenue growth, net income dipped to $55.4 million, a 19.0% decrease from the $68.4 million achieved in the corresponding quarter of the previous year. This decline in net income can be attributed to various factors, including increased operating expenses and potential shifts in market dynamics.
To provide a clearer picture of operational performance, Red Rock Resorts highlighted its adjusted EBITDA, a key non-GAAP metric widely used within the gaming sector to measure profitability. Adjusted EBITDA reached $182.7 million in Q3 2024, representing a 4.3% gain from the $175.2 million reported in Q3 2023. This positive performance underscores the company’s efficient operations and ability to generate strong cash flow.
The Las Vegas segment continues to be a significant driver of Red Rock’s growth, generating $464.7 million in revenue for Q3 2024, a 13.9% increase from $408.0 million in the prior year. Adjusted EBITDA from Las Vegas operations also rose 5.8% to reach $202.6 million, solidifying Red Rock’s position as a key player in the competitive Las Vegas market.
In terms of financial health, Red Rock Resorts held $117.5 million in cash and cash equivalents by the end of Q3 2024, balanced by total outstanding debt of $3.5 billion. This balance reflects the company’s commitment to maintaining liquidity and managing debt responsibly to support its continued growth initiatives.
Demonstrating its commitment to shareholder value, the Board of Directors declared a cash dividend of $0.25 per Class A common share for the fourth quarter of 2024. This dividend, scheduled for distribution on December 31, 2024, to shareholders on record as of December 16, 2024, is a direct reflection of Red Rock’s commitment to rewarding its investors.
Red Rock Resorts hosted its Q3 earnings call on November 7, 2024, where company leadership provided further insights into the financial performance and growth strategy. A recording of this call is available on the company’s website until November 14, 2024, ensuring accessibility for shareholders and analysts.
Through its ownership in Station Casinos LLC, Red Rock Resorts operates a diverse portfolio of properties in Las Vegas, including casinos, hotels, and entertainment complexes, catering to both local residents and tourists. The company’s focus on providing a comprehensive range of gaming and hospitality experiences continues to drive its success in this dynamic market.
