Red Rock Resorts, a land-based casino operator, has reported a 3.6% increase in revenue to $1.72 billion in 2023. The company attributes this growth to its long-term growth strategy, which includes acquiring and opening new properties. Among the new additions to the Red Rock portfolio is the Durango, which opened in Nevada in December, and the Wildfire Fremont in downtown Las Vegas, which launched in February. The company also continues to make improvements to its existing properties, with a focus on reinvesting in these locations to provide fresh and relevant amenities to its guests.

Stephen Cootey, Red Rock’s chief financial officer, emphasized the successful openings of new properties as validation of the company’s long-term growth strategy within the Las Vegas Valley. Looking ahead to 2024, while the company expresses confidence, it anticipates challenging year-over-year comparisons and ongoing disruptions at the Palace Station due to property work.

Despite the revenue growth, the net profit at Red Rock Resorts declined in 2023. Casino activity was the main source of revenue, totaling $1.13 billion for the year. Food and beverage revenue increased by 10.8%, room revenue by 11.3%, and other revenue by 8.4%. Operating expenses were 5.7% higher at $1.17 billion, with $374.5 million attributed to selling, general, and administrative activities and $294.0 million to casino costs.

In the final quarter of 2023, revenue and adjusted EBITDA increased year-on-year, but net profit declined. Q4 revenue was 8.7% higher at $462.7 million, with casino revenue reaching $301.7 million. However, pre-tax profit for the quarter reached $124.0 million, down 31.9% from the previous year, resulting in a net profit of $56.3 million, a 38.7% decline from the prior year.

Overall, Red Rock Resorts attributes its growth in revenue to its long-term growth strategy and continued investments in new and existing properties. However, the company faces challenges in maintaining its net profit despite the increase in revenue.

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