The Short Take:
- Red Rock Resorts’ total revenue increased 1.6% year-over year
- Casino revenue, which makes up 56% of total revenue grew 4.0% YoY, coming in at $230.7 million
- Food and Beverage revenue was $94.7 million, a YoY growth rate of 8.4%
- Both Room revenue and Management Fees decreased YoY, down 9.5% and 28.2%, respectively
In the third quarter of 2018, Red Rock Resorts’ (RRR) net revenues came in at $412.3 million, a 1.6% year-over-year increase. What drove this revenue increase? We’ll take a look at how each of the company’s revenue segments performed during the quarter.
Red Rock breaks down revenue into five main revenue segments: the largest is Casino followed by Food & Beverage, Room, Other and Management Fees.
The Casino segment had third quarter revenue of over $230.7 million for the quarter. This eclipsed, as usual, all of its other revenue segments.
Casino revenue made up well over half the company’s total revenue. In fact, the $230 million in casino revenue represented 56.0% of total revenue, more than double that of the next largest segment.
Casino revenue grew at a decent pace during the third quarter, if not a stellar one. Revenue from gambling grew 4.0% YoY.
While the Other category grew the fastest YoY at 10.8%, this segment’s $26.4 million made up only 6.4% of total revenue. Food and beverage, on the other hand, contributed 23.0% of total revenue and the YoY growth for food and drinks spiked 8.4%.
Two of Red Rock’s revenue segments were in the red during the third quarter if looked at on a year-over-year growth basis. Room revenue, which accounted for 9.5% of total revenue, declined 9.5% from the same quarter of 2017.
Management fees, which is derived from the company’s management of Native American casinos, fell the most of any of the RRR revenue segments. The $21.3 million in management fees during the quarter represented a 28.2% YoY decline. This steep decline was attributed to the ending of the company’s management contract at the Gun Lake Casino. Red Rock still has an active management contract at Graton Resort & Casino.
While the small YoY growth of net revenues was disappointing, the decent growth in Casino revenue was a bright spot. How did Red Rock’s Casino revenue results match up to other casino companies? Then check out our reports on MGM, BYD, LVS, PENN, CZR and WYNN.