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US – Red Rock Resorts shows stability due to Las Vegas increase

By - 1 August 2018

Red Rock Resorts, operator of 20 Las Vegas casinos, generated net revenues of $416.2m for the second quarter of 2018, an increase of 1.5 per cent, or $6.1m for the same period of 2017.

The company, who owns the Station Casinos brand, The Palms, the Red Rock and Green valley Ranch, said the increase in net revenues was primarily due to an increase in Las Vegas operations, partially offset by a decrease in Native American management fees.

Net income was $99.1m for the second quarter of 2018, an increase of $149.3 million from a net loss of $50.2m for the same period of 2017. The increase in net income was primarily due to a $57.8m after-tax gain associated with the extinguishment of a tax receivable liability, as well as a prior year after-tax loss of $78.1m associated with the acquisition of the leases at Boulder Station and Texas Station.

Net revenues from Las Vegas operations were up 4.1 per cent although Native American operations fell by 12.8 per cent due to the expiration of the Gun Lake management agreement in February of 2018.

The Palace Station redevelopment project remains on schedule and the budget remains unchanged. The Palace Station project is expected to be completed in phases by the end of 2018. As of June 30, 2018, the company has incurred $147.3m in costs against that $191m project.

The Palms redevelopment project also remains on schedule and the budget remains unchanged. The final elements of phase one of the project opened in May 2018, with components of phase two of the project expected to open through the second quarter of 2019, and phase three of the project expected to open by the third quarter of 2019.

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