Red Rock Resorts Inc.’s financial results for the fourth quarter and year ended December 31, 2019 have been posted. Net revenues for Q4 were $460.8 m, ahead of $6.8%, or $29.3 m, year-on-year from $431.5 m. The increase in net revenues has been led by an increase in operations in Las Vegas, driven by increases in net revenues at the Palms Casino Resort.
Q4 net income was $6.8 million, down 48.1%, or $6.3 million, from $13.2 million year-on-year, primarily due to a one-time charge related to the company’s acquisition of its previously leased corporate office building and the termination of its lease funding obligation.
Adjusted EBITDA for Q4 was $137.6 million, up 1.8 percent, or $2.5 million, from $135.1 million year-on-year as a result of increased operations in Las Vegas other than the Palms, partially offset by a decline in adjusted EBITDA at the Palms.
Net revenues in 2019 were $1.86bn for the full year, a rise of 10.4 percent, or $175.5 m year-on-year, largely due to an increase of $170.8 m in Las Vegas operations, led by net revenue growth at the Palms.
Net loss for the full year in 2019 was $6.7 m, compared to $219.5 m in 2018. The decline resulted from a reduction in the fair value of derivative instruments; a rise in write downs and other costs including the termination of certain contractual deals with artists and job arrangements at the Palms; and a higher depreciation and amortisation of the Palms renovation project.
A benefit recognised in 2018 associated with the extinguishing of a tax receivable debt also affected the improvement from the prior year.
Adjusted EBITDA in 2019 was unchanged for the full year, at $509 m relative to 2018. The flat year-over-year adjusted EBITDA was primarily the result of a rise in operations in Las Vegas other than the Palms, balanced by a decline in adjusted EBITDA at the Palms.
Q4 Net revenue from Las Vegas operations was $437.9 million, a rise of 6.9% or $28.5m from $409.5 million in the same quarter of 2018. Adjusted EBITDA from Las Vegas operations, from $121 m year-on-year, was $125.5 m in the quarter, ahead of 3.7%, or $4.5 m.
Adjusted EBITDA from Native American activities amounted to $19.9 m in Q4, showing a 3.9% rise from $19.1 m in the same period of 2018 due to higher management fees created under the Graton Resort management contract.