Red Rock Resorts, in its Q3 financial update, has reported a net loss of $26.8m for the third quarter of 2019, a decrease of $51.9m, from net income of $25.1m in the same period of 2018.
The firm blamed the shortfall in net income primarily on one-time charges relating to the termination of certain artist performance agreements and employment arrangements at its Palms Casino Resort in Las Vegas. Higher depreciation and amortization relating to the Palms redevelopment project were also cited as influencing factors.
Las Vegas operations did, however, deliver a Q3 fillip, with the firm reporting net revenues ahead to $465.9m, up 13% or $53.6m, from $412.3m in the same period of 2018.
Adjusted EBITDA for Q3 came in at $111.1m, an increase of 1.8%, or $2m, from $109.1m year-on-year. The increase was primarily due to an increase in Las Vegas operations excluding the Palms and management fees generated under the Graton Resort management agreement, partially offset by a decrease in adjusted EBITDA at the Palms.
According to the update, net revenues from Las Vegas operations were $440.7m during the quarter, ahead by 13.1%, or $51m, from $389.7m in the same period of 2018. Adjusted EBITDA from Las Vegas operations was $97.2m, down 0.8%, or $0.7m from $97.9m year-on-year.
Adjusted EBITDA from Native American operations in the quarter was $22.3m, an increase of 12.6% from $19.8m in the same period of 2018 due to increased management fees generated under the Graton Resort management agreement.