Red Rock Resorts, the holding company for Station Casinos, has reported financial results for the fourth quarter and year ending December 31, 2017 showing net revenues were $394.0 million for the fourth quarter of 2017, a decrease of 0.1 percent, or $0.6 million, from $394.6 million for the same period of 2016.
The company largely attributes the decrease in net revenues to substantial ongoing construction disruptions at Palace Station and the Palms Casino Resort, two of its major Las Vegas-area properties.
Net income was $46.0 million for the fourth quarter of 2017, an increase of $4.9 million from net income of $41.1 million for the same period in 2016.
Adjusted EBITDA was $122.6 million for the fourth quarter of 2017, a decrease of 1.7 percent from $124.8 million in the same period of 2016.
For the full year, net revenues were $1.62 billion in 2017, an increase of 11.2 percent, or $163.2 million, from $1.45 billion for the same period of 2016. The increase in net revenues was primarily due to the acquisition of the Palms, a $41.8 million increase in same-store Las Vegas operations and a $7.0 million increase in Native American operations.
Company officials, during the Tuesday earnings conference call, said the Palace Station project remains on schedule and the budget remains unchanged. The Palace Station project is expected to be completed in phases by the end of 2018.
The company also revealed that it is accelerating the third phase of its redevelopment plan for the Palms. The key components of this phase will include: a casino floor expansion featuring 300 new slot machines and 16 table games; an authentic Hong Kong-style Dim Sum restaurant; a casino connector seamlessly integrating the adjacent 599 room Palms Place and the existing self-park garage into the property; collaborations with world-class contemporary artists throughout the property; and state-of-the-art digital signage on the hotel exterior.