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US – The Palms helps Red Rock to 13 per cent increase in Q3

By - 6 November 2019

Red Rock Resorts saw its revenues increase by $465.9m for the third quarter of 2019, an increase of 13 per cent or $53.6m due to an increase in Las Vegas operations, led by the Palms Casino Resort.

Net loss was $26.8m for the third quarter of 2019, a decrease of $51.9m, from net income of $25.1m in the same period of 2018. The decrease in net income was primarily due to one-time charges relating to the termination of certain artist performance agreements and employment arrangements at the Palms, as well as higher depreciation and amortization relating to the Palms redevelopment project.

Net revenues from Las Vegas operations were $440.7m for the third quarter of 2019, an increase of 13.1 per cent, or $51m, from $389.7m in the same period of 2018. Adjusted EBITDA from Las Vegas operations was $97.2m for the third quarter of 2019, a decrease of 0.8 per cent, or $0.7m, from $97.9min the same period of 2018. The increase in net revenues from Las Vegas operations was primarily due to an increase in net revenues at the Palms, and the decrease in Adjusted EBITDA from Las Vegas operations was primarily due to a decrease in Adjusted EBITDA at the Palms.
Adjusted EBITDA from Native American operations was $22.3m for the third quarter of 2019, an increase of 12.6 per cent from $19.8m in the same period of 2018 due to increased management fees generated under the Graton Resort management agreement.

The Palms redevelopment project is now complete with the final component of phase three of the project, Michelin-starred dim sum restaurant Tim Ho Wan, having opened in late September 2019. As of September 30, 2019, the company has incurred approximately $679m in costs against the $690m project.

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