Red Rock Resorts announced an 8.0% rise in revenue for the quarter ending in 2023. However, a rise in expenditure led to a decline in net profits.
The total revenue of $433.6m for the three-month period ending March 31 was higher than the previous quarter.
Red Rock’s Las Vegas operations generated $430.0m of this total. The remaining $3.6m came from corporate and other activity.
Casino revenue increased 3.0% year-on-year to $288.2m. Food and beverage revenue rose 18.9% to $78.1m. Room revenue increased 19.3%, to $43.9m. Other revenue was up by 20.3%, and management fees were 11.3% more at $237,000.
The revenue growth was however accompanied by an increase in operating costs which rose 9.8% to $296.4m. The spending was up in every area, except for depreciation.
Red Rock reported $42.5m of interest expenses, and $899,000 in earnings from joint-ventures, bringing the pre-tax profit to $95.7m for the first three months, down 8.9% over the same period last year.
The operator paid $10m in taxes, leaving $85.5m of net profit. This is a 7.3% drop from Q1 2022. After subtracting $40.9m of net profit from non controlling interests, the net profit attributable Red Rock was $44.7m, a drop of 7.5% on a year-on-year basis.
Red Rock, however, was able report an 8.6% growth in adjusted EBITDA for the quarter to $194.2m.