Red Rock Resorts, the owner of locals casino operator Station Casinos, has reported a 13.7% year-over-year increase in revenue for the third quarter, reaching $468 million. However, net income fell by 19% to $55.4 million from $68.4 million in the same period of 2023.
The figures come as Red Rock Resorts allocates millions of dollars to its development pipeline, including expansion at the Durango Casino & Resort in Las Vegas and renovations at other properties. For the full year, excluding the spending to close out the $800 million Durango resort that opened in December, the operator expects capital spending to be between $185 million and $195 million spread between maintenance and investment capital.
For the third quarter, the company's Adjusted EBITDA rose to $182.7 million, a 4.3% increase from $175.2 million in Q3 2023. Net revenues from Las Vegas operations were $464.7 million for Q3 2024, an increase of 13.9%, or $56.8 million, from $408 million in the year-ago period. Adjusted EBITDA from Las Vegas operations was $202.6 million, an increase of 5.8%, or $11.1 million, from $191.4 million in Q3 2023.
This growth was attributed to Red Rock’s continued focus on catering to the local Las Vegas market through its Station Casino properties. This includes locations Red Rock Resort and Casino, Green Valley Ranch, and the new Durango Casino & Resort.
Speaking of Durango in particular, management said during the third-quarter earnings call that they intend to move ahead with the property's expansion by the end of the year. The current plans for the next phase will add over 25,000 square feet of additional casino space, including a new high-limit slot and bar area with 120 new slots and another 110 on the casino floor. A covered parking garage with almost 2,000 parking spots is also in the works. The current budget for the project is around $116 million, and the expansion is expected to take around 12 months to complete.
The company's cash and cash equivalents at September 30 were $117.5 million and total principal amount of debt outstanding at the end of the third quarter was $3.5 billion.
Alongside the report, Red Rock’s Board of Directors declared a cash dividend of $0.25 per Class A common share for Q4 2024, payable on December 31 to stockholders of record as of the close of business on December 16, 2024.
Moreover, management discussed further expansion plans, with Stephen Cootey, chief financial officer and executive vice president, noting the company remains committed to strategically investing and offering new amenities to guests in order to drive incremental visitation and spending. "We expect to continue to invest in our existing properties throughout 2024, including adding local favorite China Mama at Palace Station later this year," Cootey said.
Red Rock also plans to invest in both its Sunset Station and Green Valley Ranch properties in 2025. At Sunset Station, where Red Rock recently renovated the race and sportsbook and did a partial casino remodel, the company will add a new country-western bar, a new Mexican restaurant, an all-new center bar, along with a renovated casino space, with a $53 million price tag.
Meanwhile, at Green Valley Ranch, Red Rock is expecting to start a $150 million complete refresh of its room product, with work expected to start in June and to continue through November.
