Red Rock Reveals Financial Report For 2017
In the latest casino news, US-based casino operator Red Rock Resorts Incorporated has revealed its financial results for the full 2017 year, showing a surprising 59.5% year on year drop in its net income. However, the firm has cited its recent acquisitions of the Las Vegas Texas Station Gambling Hall and Hotel, and the Boulder Station Hotel and Casino, as the main reasons for its weaker-than-usual results.
Red Rock owns and manages more than 20 casino properties in Michigan, Nevada and California through its majority interest in the Station Casinos brand, including the famous Red Rock Casino Resort and Spa. Red Rock has revealed that last year, its corporate net revenues soared by 11.2% year on year to reach $1.62 billion, thanks mainly to its purchase of the Palms Casino Resort and Spa.
The corporation further attributed this increase in revenues to a $41.8 million increase in its Las Vegas earnings last year, not to mention a $7 million increase in takings from its two Native American casino operators as well. These factors also appear to have boosted Red Rock’s full year EBITDA as well, which reached $496.4 million and showed a rise of 2.5% over 2016’s results - despite a $6 million increase in annual costs.
Palms Resort Revamp Accelerated
Red Rock Resorts Incorporated’s cash and equivalent figures reached $231.5 million at the end of last year, standing beside debts of $2.68 billion. The firm has since used its 2017 financial results to inform investors about its current redevelopment of the Palms Casino Resort and Spa, noting that it is already facing $77 million of the project’s estimated $620 million total cost.
According to a recent statement, the company is pleased to announce that it will be ‘accelerating’ the third phase of the renovation project for the Palms Casino Resort and Spa. This comes as part of the venue’s transformation into what Red Rock has termed a ‘must-see’ gaming destination in its financial report.
Palace Station To Open This Year
As part of these redevelopment plans, Red Rock added that the Palms will have its casino gaming floor expanded in order to provide extra room for another 300 slot machines and 16 premium gaming tables. The operator has also noted that the project, which is set to be complete in Q4 of 2019, will also boast a Hong Kong-style Dim Sum eatery, cutting-edge digital signage, and a ‘casino connector’ that will join the casino itself with the Palms Hotel’s 599 rooms.
Lastly, Red Rock has also explained that it had spent around $80 million of its anticipated $191 million costs to renovate the Vegas-based Palace Station Hotel and Casino. According to the firm, this project is set for completion in phases, and should be ready to open its doors at the end of 2018.