Red Rock Resorts is confident in its potential to achieve record results in 2023, despite a decline in revenue, adjusted EBITDA, and net profit in the third quarter of 2022. The company reported a 0.7% decrease in revenue to $411.6m, primarily due to a decline in casino activity. However, all other areas experienced increases in Q3, leading the company to remain optimistic for the rest of the year.
Chief financial officer Stephen Cootey expressed confidence in the company’s performance, stating that 2023 could potentially be a record year for Red Rock Resorts. The third quarter marked the company’s third-best Q3 in terms of same-store net revenue, adjusted EBITDA, and adjusted EBITDA margin, only surpassed by the exceptional results in the third quarters of 2021 and 2022.
Casino revenue was the main source of revenue for Red Rock in Q3, generating $272.7m, down 3.4% year-on-year. However, growth in other operations such as food and beverage, room revenue, and other revenue offset declines.
Operating costs for Red Rock increased by 5.6% in Q3, leading to a 27.5% decrease in pre-tax profit. Adjusted EBITDA also slipped 3.7% year-on-year. Nonetheless, revenue for the nine months to 30 September increased by 1.9% on last year, while operating costs were reduced by 2.7%.
Despite the decline in adjusted EBITDA, Cootey remains optimistic about achieving the best financial year in Red Rock’s history. The company’s success in the first two quarters of the year provides a solid foundation for potential growth in 2023, proving that the slight decline in Q3 does not deter its overall positive outlook.