Red Rock Resorts CEO said he’s unsure if, or when, the company will reopen its closed properties.
The parent company of Station Casinos, Red Rock had shuttered its Nevada properties for nearly 80 days under state orders to help curb the spread of COVID-19. Four of its Southern Nevada properties — Palms, Texas Station, Fiesta Henderson and Fiesta Rancho — have yet to reopen.
“It’s too early to make that decision (on reopening) at this time,” said CEO Frank Fertitta III during a Tuesday earnings call.
The company reported 77.5 percent drop in revenue for the second quarter, but said its reopened properties in Las Vegas have been performing well since June.
The casino operator’s net revenues were $108.5 million for the second quarter, while net loss was $118.4 million.
“The unprecedented challenges presented by the COVID-19 pandemic have significantly impacted the Company’s business operations,” Red Rock Resorts said in a Tuesday news release.
Despite earnings suffering under the pandemic, the company said its Las Vegas properties showed strong performance between reopening on June 4 and the end of the quarter on June 30, with cash flow and margins higher than year prior thanks to a streamlined cost structure.
“However, these operating trends are based on the limited period that the properties were open in June,” the statement said. “There can be no assurance that these trends will continue at our properties that have reopened or recur at our other properties when or if they reopen.”
Red Rock shares closed up 4.7 percent Tuesday at $12.24 on the NASDAQ.
This is a developing story. Check back for updates.
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