Red Rock Resorts has published its financial results for Q2 of FY22, noting that a difficult period of trading led to a 77.4% drop-off in net income year-over-year.
During Q2, the company operated across its Red Rock, Green Valley Ranch, Santa Fe Station, Boulder Station, Palace Station and Sunset Station properties, together with its Wildfire Properties and posted revenues of $422.2m, down 1% YoY (June 2021: $428.2m).
The drop in revenue, coupled with higher costs, led to net income declining by 77.4% to $32.4m compared to $143.4m in June 2021.
However, adjusted EBITDA didn’t drop as drastically, declining just 10% YoY to $188.9m from $210.2m in Q2 of 2021.
Across its Las Vegas operations, which make up the overwhelming majority of its business, Red Rock saw revenues of $420.1m, down 1% YoY from last year’s total of $426.4m.
Meanwhile, Red Rock posted an adjusted EBITDA decrease of 8% amongst its Las Vegas operations to $203.9m, down from $222.6m in Q2 of 2021.
At the end of the trading period, the company had cash equivalents of $256.3m and the total principal amount of debt stood at $2.88bn.
Following a meeting of the board of directors, the company declared a cash dividend of $0.25 per Class A common share for Q3, payable on September 30, 2022 to all shareholders as of September 15.
Finally, proper to the dividend payment, Station Holdco will make a cash payment of $0.25 per unit up to $27m to all unit holders of record, which includes Red Rock. $15.5m is expected to be paid to Red Rock, whilst the remaining $11.5m will be paid to other unit holders of record.
