Red Rock Resorts has documented its continuous recovery following periods of property closures to combat the spread of COVID-19, but revenue in the second quarter of this year is a smidgeon lower than it was two years ago.
The company continued to operate its Red Rock, Green Valley Ranch, Santa Fe Station, Boulder Station, Palace Station, and Sunset Station properties, as well as its Wildfire Properties, during the second quarter, while the Palms Casino Resort, Texas Station, Fiesta Rancho, and Fiesta Henderson properties remained closed.
The group’s net revenue for the quarter ended June 30, 2021, was $428.2 million, up 295 percent from $319.7 million a year earlier, owing mostly to the aforementioned property closures for much of the period in 2020. In comparison to the same period last year, net revenue fell 11 percent to $482.9 million.
Net income was $143. million, up from losses of $118.4 million and $7.1 million in 2020 and 2019, respectively.
Adjusted EBITDA came in at $212.2 million, up from a loss of $17.3 million a year ago and an 82 percent increase from $115.2 million in 2019.
Las Vegas properties
Looking at the group’s Las Vegas activities in greater detail, revenue grew 322 percent from $101 million to $426.4 million, owing mostly to the closure of hotels. Net revenue was down 7 percent from $457.8 million in the same time last year.
For the second quarter of 2021, adjusted EBITDA from Las Vegas operations was $222.6 million, up from a loss of $12.1 million in 2020 and a 110 percent rise over the previous year’s $106 million.
The San Manuel Band of Mission Indians and the San Manuel Gaming and Hospitality Authority announced a definitive agreement to buy the Palms Casino Resort in Las Vegas for $650 million earlier this year.
The deal, which will see an SMGHA subsidiary buy the facility from Red Rock Resorts and its Station Casinos subsidiary, is scheduled to close later this year, pending regulatory clearances and other usual closing conditions.