Red Rock Resorts (RRR) Q4 2024 earnings summary

Executive summary

• Achieved record fourth quarter and full year net revenue and Adjusted EBITDA in Las Vegas operations, with near-record margins despite slight margin compression year-over-year.

• Fourth quarter 2024 net revenues rose 7.1% year-over-year to $495.7 million, while net income declined 19.5% to $87.7 million.

• Full year 2024 net revenues increased 12.5% to $1.94 billion, but net income fell 13.8% to $291.3 million.

• Durango Casino & Resort continues to ramp up, driving incremental play and new customer sign-ups, with over 85,000 new customers added and a projected 16% return in 2024.

• Expansion projects and property enhancements are underway, including Durango Phase 2, Sunset Station, and Green Valley Ranch, to capture regional growth and improve amenities.

Financial highlights

• Las Vegas Q4 net revenue: $492.6M, up 7.2% YoY; Adjusted EBITDA: $223.9M, up 1.6% YoY; margin: 45.4%, down 250 bps YoY.

• Consolidated Q4 net revenue: $495.7M, up 7.1% YoY; Adjusted EBITDA: $202.4M, up 0.5% YoY; margin: 40.8%, down 267 bps YoY.

• Full year Las Vegas net revenue: $1.93B, up 12.6% YoY; Adjusted EBITDA: $879.4M, up 7.4% YoY; margin: 45.7%, down 222 bps YoY.

• Full year consolidated net revenue: $1.94B, up 12.5% YoY; Adjusted EBITDA: $795.9M, up 6.7% YoY; margin: 41%, down 222 bps YoY.

• Q4 operating income was $142.3M, down from $172.0M YoY; Q4 EPS (diluted) was $0.76, down from $0.95; full year EPS (diluted) was $2.53, down from $2.94.

Outlook and guidance

• 2025 capital spend expected at $375–$425M, with $285–$325M in investment capital and $90–$100M in maintenance.

• Anticipates $25M in disruption from property enhancements in 2025, mainly in the second half as Green Valley Ranch and Sunset Station renovations peak.

• Durango expected to reach 20% cash-on-cash return over three years; Red Rock backfill on track for 2–3 years.

• Sees stable core customer trends and positive momentum in group and catering business into 2025.