Red Rock Resorts Post Favorable FY 2022 Results, Vows to Remain Disciplined
CFO Stephen Cootey believes that Red Rock Resorts is poised for success, thanks to its strong lineup of best-in-class locations
Red Rock Resorts just published its financial results for Q4 2022, demonstrating mixed results. Despite the headwinds in Q4, the company’s annual results were positive, inspiring confidence in the business.
As reported by the operator, it recorded net revenue of $425.5 million in Q4, which represents a slight 0.7% year-on-year increase. Net income, however, declined by 14.9% to $170.2 million. Adjusted EBITDA sat at $194.4 million, or a YOY increase of 2.5%. Revenue from Las Vegas decreased slightly to $419.6 million with an adjusted EBITDA of $206.9 million.
In 2022, Red Rock Resorts earned $1.66 billion, representing an increase of 2.8%. Net income was $390.4, which translates into a significant 10% increase. Lastly, adjusted EBITDA was at its all-time high at $743.9 million. The Las Vegas operations saw the company’s annual net revenues increase by 3% to $1.65 billion. Adjusted EBITDA from those operations sat at $812.8 million.
By December 31, 2022, the company had stockpiled cash and cash equivalents of $117.3 million. Its outstanding debts at that moment were $3 billion.
Cootey Shared His Optimism During the Earnings Call
Red Rock Resorts addressed the results in a quarterly earnings call. Stephen Cootey, the company’s executive vice president, chief financial officer and treasurer, spoke extensively on the recorded results. He noted that the company is optimistic about the future, despite the challenging macroeconomic situation.
Cootey said that 2022 was full of challenges such as inflation and high interest rates. Despite this, Red Rock’s focus helped it remain true to its business and improve adjusted EBITDA while maintaining its adjusted EBITDA margin and returning over $1.1 billion in capital.
The CFO praised the company’s corporate structure and operations for standing strong and delivering impressive annual results. He said that Red Rock will remain disciplined and focused on executing and investing in its core strategy.
Currently, Red Rock is working hard on its Durango casino hotel. The venue is expected to have a gaming space of a whopping 83,178 square feet and is located in what Cootey called one with a “very favorable demographic profile and no unrestricted gaming competitors within five miles.”
Cootey added that construction work on the new casino is progressing nicely. The casino resort should be ready to open by the end of the year, Red Rock hopes.
Meanwhile, the company is preparing to open Wildfire Fremont, a Las Vegas-based gaming venue with 21,000 square feet of gaming space. Red Rock is also planning to construct a new casino near Madera, California.
Cootey is certain that Red Rock Resorts is poised for growth thanks to its strong portfolio of best-in-class assets and locations and robust pipeline. The executive believes that this will allow the company to capitalize on the favorable demographic trends in Las Vegas and beyond.
The CFO concluded that Red Rock will remain vigilant of the changes in the landscape as it continues executing its long-term strategy.
Although Fiona doesn't have a long-spanning background within the gambling industry, she is an incredibly skilled journalist who has built a strong interest in the constantly growing iGaming network. The team at GamblingNews.com is glad to have her on our roster to help deliver the best stories as soon as they hit. Aside from writing, she loves to dabble in online casino games such as slots and roulette, both for her own enjoyment and also as research to better improve her understanding of the industry.
