Executives with Red Rock Resorts Inc., parent company of Station Casinos, on Thursday said Las Vegas’ healthy economy helped raise first-quarter revenue 16.3 percent over last year’s quarter to $417.7 million.
It was the the 16th straight quarter of year-over-year consolidated net revenue growth for the quarter that ended March 31.
The company recently wrapped up the first phase of a multimillion-dollar renovation of Palace Station that included opening a 10,000-square-foot, 362-seat bingo hall, revamping the porte cochere and removing train imagery from the Sahara Avenue-facing facade.
Officials have said the next phase of redevelopment at Palace will occur over the next 16 months and include construction of new restaurants and moving the buffet from its second-story level to the main casino floor. The existing buffet will remain open through renovations.
The company has been less specific about plans for the Palms and when asked by investors in Thursday’s conference call, executive vice president and chief financial officer Marc Falcone said the company is focused on delivering quality products at Palace and Palms and that details would be shared at a later time.
Falcone also had no updates for the company’s property holdings on Durango Drive in southwest Las Vegas and in Reno near the Reno-Sparks Convention Center.
Falcone attributed the company’s best first quarter since 2008 to Southern Nevada’s solid employment growth, the robust housing market and other indicators of a thriving economy. He said more seniors are recognizing the region as an ideal place to retire — prime customers for Station’s business model.
Falcone said he thinks the economy is primed for continued growth, especially after this week’s announcement that the Oakland Raiders have selected a site to build a stadium that will bring NFL football to Southern Nevada.
The inclusion of a provision for income tax in the quarterly report resulted in net income dropping off 24 percent to $45.2 million.
Red Rock, which also has tribal gaming management contracts in Michigan and California, saw Las Vegas net revenue grow 16.5 percent to $386.2 million compared with $331.5 million in the prior-year quarter.
Falcone told investors the change in ownership of the Aliante and the Cannery properties hasn’t changed the competitive landscape for his company.
Contact Richard N. Velotta at email@example.com or 702-477-3893. Follow @RickVelotta on Twitter.
Red Rock by the numbers
First quarter earnings:
1Q 2017 1Q 2016
Net revenue $417.7 million $359.2 million
Net income attributable
to Red Rock $19.8 million $57.6 million
Earnings per share 30 cents 64 cents