As the company continues the introduction of its phased reopening plan, Red Rock Resorts, the parent company of South Nevada gaming organisation Station Casinos, has reported continued struggles.
When Red Rock operated its first-to-reopen properties of Red Rock Casino Resort, Green Valley Ranch, Santa Fe Station, Boulder Station, Palace Station and Sunset Station, along with its Wildfire properties and the Graton Casino Resort, it released its latest financial report, detailing the company’s success during the third quarter of the year.
Net sales declined 24.2 percent from $465.9 million to $353.2 million year-on-year during the period, largely due to the continued effects of the COVID-19 pandemic.
Net income came in at $72 million , up from a loss of $26.8 million for the same duration a year ago, as adjusted EBITDA rose by 44.8 percent to $160.9 million (2019: $111.1 million).
During the quarter, sales plummeted 27.2 percent to $320.8 million (2019: $440.7 million) as adjusted EBITDA finished at $141.7 million, marking an increase of 38.6 percent from $102.2 million, recording its success in the Las Vegas segment in the midst of the health crisis.
For the third quarter of 2020, adjusted EBITDA from Native American activities was $29.8 million, a 33.9 percent rise from $22.3 million in the same timeframe of 2019.
For the first nine months of the year, sales fell 39.8 percent to $839 million for the period ended September 30, 2020 (2019: $1.39 billion), net loss fell from $13.5 million to $224.1 million, and adjusted EBITDA decreased 41.3 percent from $371.3 million to $217.9 million.
This new financial disclosure follows Red Rock Resorts welcoming last month a long-awaited decision by the California Supreme Court, which removed a major obstacle in the construction of a casino near Madera, California, along with Mono Indians’ North Fork Rancheria.
The court ruled that when he signed on a pair of federal decisions in 2011 that led to the approval of two so-called ‘off-reservation’ tribal gaming projects in Madera and Yuba counties, former Governor Jerry Brown operated within his authority.
The decision will allow the North Fork Rancheria to step forward north of the city with the planning, financing and development of its long awaited project.