Red Rock Resorts saw a 24.8% rise in gaming revenue year-on-year in the first quarter of 2021, but impairment costs and difficulties elsewhere due to the novel coronavirus (Covid-19) pandemic led to an overall revenue decline and a loss for the quarter.
Gaming operations brought in the highest revenue overall at $259.9m, an increase from $208.2m compared to Q1 in 2020.
Food and beverage revenue came in second with $46.8m, a decrease of 46.9% compared to the first quarter of 2020. This was likely due to the impact of the Covid-19 pandemic and subsequent restrictions. The decrease in room revenue from $40.0m to $21.9m, a decline of 45.2%, would also be explained by the restrictions.
Other income bringing in $15.5m and management fees coming to $8.3m, decreases of 27.1% and 57% year-on-year respectively, brought the total net revenue to $352.6m. This was a decrease of 6.5% year-on-year.
Las Vegas operations brought in revenue of $342.8m, a decrease of 3.8% from the first quarter of 2020, while tribal casino management brought in $8.08m, a 58.0% decrease year-on-year.
However, the operating costs caused significant loss for Red Rock in Q1. Impairment of assets totaled at $169.7m, the highest operating costs of the quarter, after no impairment costs in Q1 of 2020.
Selling, general and administrative costs followed, amounting to $78.9m, a decrease of 22.0% from $101.2m last year. Casino expenses, at $63.1m, and food and beverage costs, at $41.0m, came next.
The overall operating costs totaled at $423.7m, creating an operating loss of $71.1m for Red Rock. This compared with a $2.7m profit the year prior.
After $390,000 in income from joint ventures, Red Rock made a final loss of $70.8m, compared to a $2.9m profit in 2020.
Red Rock had a difficult 2020, with its revenue falling to 36.3%.
Perhaps in an effort to make up for its 2020 earnings, yesterday Red Rock finalized the sale of its Palms Casino Resort to its subsidiary, Station Casinos LLC, and the subsidiary of the San Manuel Band of Mission Indians for $650m cash.