Covid-19 closures push Red Rock to $223.7m loss in H1
Casino operator Red Rock Resorts said the enforced closure of its properties due to the novel coronavirus (Covid-19) pandemic was the main reason behind a $223.7m net loss for the first half.
Net revenue for the six months until June 30 amounted to $485.9m, down 47.8% from $929.9m in the same period last year.
All of Red Rock’s US casinos were forced to temporarily close from mid-March, in line with state orders to slow the spread of Covid-19, and did not start to reopen until June 4.
As such, casino and related revenue took a significant hit, with casino revenue down 42.1% to $283.9m in H1. Food and beverage revenue slipped 57.4% to $103.3m, while rooms revenue was down 53.2% to $45.6m.
Other revenue was also 47.4% lower at $27.8m, while Red Rock said that fees related to management were down 45.9% year-on-year to $25.3m.
However, the shutdown did mean that Red Rock was able to save on costs, with total operating expenses in the first half amounting to $576.8m, down 29.5% from $576.8m last year.