Red Rock Resorts, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant revenue growth but a decline in net income compared to the previous fiscal period.

For the three months ended September 30, 2024, total operating revenues reached $468.0 million, a 13.7% increase from $411.6 million in the same period of 2023. Casino revenues contributed significantly, rising 15.2% to $314.2 million, up from $272.7 million. However, net income for the quarter fell to $55.4 million, down from $68.4 million in 2023, with net income attributable to Red Rock Resorts decreasing to $28.9 million from $35.5 million. This decline in profitability was reflected in earnings per share, which dropped to $0.49 from $0.61.

For the nine months ended September 30, 2024, net revenues totaled $1.44 billion, a 14.4% increase from $1.26 billion in the prior year. Despite this growth, net income decreased to $203.6 million from $228.9 million, with net income attributable to Red Rock Resorts at $107.5 million, down from $119.7 million. Earnings per share for the nine-month period also declined to $1.82 from $2.07.

Operating income for the third quarter increased to $130.6 million, up 6.6% from $122.5 million in 2023, while for the nine months, it rose to $426.4 million from $386.7 million, reflecting a 10.3% increase. Adjusted EBITDA for the third quarter was $182.7 million, compared to $175.2 million in the prior year, and for the nine months, it increased to $593.5 million from $544.7 million.

The company’s total assets grew to $3.995 billion as of September 30, 2024, from $3.955 billion at the end of 2023. Total liabilities increased to $3.755 billion, up from $3.711 billion, while total stockholders’ equity decreased to $239.8 million from $243.9 million. Cash and cash equivalents were reported at $117.5 million, down from $137.6 million.

Strategically, Red Rock opened the Durango Casino & Resort in December 2023 and is advancing the North Fork Project, a gaming and entertainment facility in California, with an estimated completion cost of $375 million to $425 million. The company has also implemented cost controls to mitigate inflation impacts, which have affected commodity prices and labor costs.

In financing activities, Red Rock secured a new credit agreement in March 2024, including a $1.57 billion senior secured term loan and a $1.1 billion revolving credit facility. The company issued $500 million in 6.625% Senior Notes, with proceeds used for refinancing and general corporate purposes.