Red Rock Q2 revenue nearly quadruples as pandemic restrictions ease

Of this total, casino gaming generated $304.2m, which made up 71.1% of the total net revenue. This was up 302.4% from last year, in line with venues re-opening after a pandemic-enforced closure in 2020.

Food and drinks contributed $64.9m, room revenues amounted to $39.2m, whilst other revenues and management fees totaled $19.9m.

Operating expenses for Red Rock increased slightly, up 28.5% to $259.6m. Casino costs were $70.4m, food and drink came to $48.9m, whilst room and other expenses were $20.6m.

General and administrative costs were the biggest expense for Red Rock amounting to $84.1m - up 28.9% from last year. Depreciation and amortization decreased 37.6% to $36.2m.

Operating income for the quarter came to $168.5m, compared to a $93.7m loss made last year. After factoring in $581,000 worth of tax, net income for the quarter totaled $143.4m.

Red Rock's adjusted earnings before interest, taxes, depreciation and amortization rose by $227.4m to $210.2m.

Red Rock's executive vice president, chief financial officer and treasurer Stephen Cootey said the business was able to both attract new, younger customers and bring back older customers following reopening. “ As government-mandated restrictions fell away and more of our population became vaccinated, this last quarter, we saw the continued return of our core customer while continuing to retain our share of the younger customer demographic,” he said

“ A significant pent-up leisure demand led the company to historic revenues. This, coupled with our disciplined operating approach to running our business, allows the company to enjoy record high EBITDA, EBITDA margin and free cash flow conversion. We are happy with these results for the quarter. ” 

Red Rock was recently ordered to enter negotiations with its employees' union as a judge said the company likely committed misconduct during union elections.