Red Rock Resorts has reported a drop in revenue for the first quarter of 2018.
Net revenues were $421m for the first quarter of 2018, a decrease of 1.1 per cent, or $4.7m, from $425.7m for the same period of 2017. According to the company, the decrease in net revenues was primarily due to ongoing construction disruption at Palace Station Hotel and Casino and the Palms Casino Resort and a decrease in Native American management fees.
However, net income was $82.1m for the first quarter of 2018, an increase of $36.7m from net income of $45.4m for the same period of 2017. This increase has been attributed largely to a $13.3m after-tax gain associated with the extinguishment of a tax receivable liability, as well as a $14.3m after-tax positive change in the fair value of interest rate swaps.
Adjusted EBITDA was $140.1m for the quarter, an increase of 2.9 per cent from $136.2m in the same period of 2017. The increase was primarily due to an increase in Las Vegas operations, partially offset by the decrease in Native American management fees.
