Red Rock Resorts CEO Frank Fertitta recently stated that the Hotel Casino Palms and three other establishments in Las Vegas, in the United States, would probably open when the company was sure its customers would return.
Red Rock Resorts is a public company that owns part of Station Casinos. The group has four closed locations in Las Vegas: Texas Station, Fiesta Rancho, Fiesta Henderson and Palms Casino Resort.
The company also owns Red Rock, Green Valley Ranch, Santa Fe Station, Boulder Station, Palace Station and Sunset Station, in addition to its Wildfire stores. The group also owns the Graton Casino Resort north of San Francisco.
Fertitta stressed that there are “two bases” into which businesses enter, the tourist customer base and the customer base formerly resident in Las Vegas. “I think Palms is more geared towards the tourist market that visits Las Vegas,” said Fertitta, adding that “this business should be back to normal.
“As for local establishments, we will continue to see how older demographic groups respond after the vaccine and whether activity returns to normal before we do anything, unless we can guarantee cash flow,” he added.
Red Rock Resorts fourth quarter and end of year financial reports
Red Rock Resorts reported a loss of $ 174.5 million in 2020, compared to a net loss of $ 6.7 million in 2019. Net profit for the year shrank 36%, falling from $ 1.9 billion to US $ 1.2 billion.
The casino operator reported an adjusted EBITDA (financial index based on earnings before interest, taxes, depreciation and amortization) of $ 368.5 million in 2020, compared to $ 509 million in 2019. “The decline in adjusted EBITDA it was due to the impacts of the coronavirus pandemic ”, analyzed Red Rock.
In the fourth quarter, the company posted revenue of $ 343.4 million, down 25.5% from the same period last year, while net income was $ 49.6 million, an increase of $ 42.8 million.
Casino revenue reached $ 240 million from its Las Vegas operations, about $ 15 million less than in the fourth quarter of 2019.
With less revenue and less expense from operations not related to casinos, such as food and beverage services and hotel rooms, the higher margins of casino operations helped boost the numbers. Therefore, adjusted EBITDA was US $ 150.5 million in the fourth quarter of 2020, an increase of 9.4%.
