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Red Rock Resorts Announces Fourth Quarter and Year End 2018 Results

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Red Rock Resorts Announces Fourth Quarter and Year End 2018 ResultsReading Time: 7 minutes

 

Red Rock Resorts, Inc. reported financial results for the fourth quarter and year ended December 31, 2018.  The Company adopted FASB’s new revenue recognition standard (“ASC 606”), effective January 1, 2018.  Certain prior period amounts have been adjusted to reflect the full retrospective adoption of ASC 606, with no material impact on operating income, net income or Adjusted EBITDA(1).

Net revenues were $431.5 million for the fourth quarter of 2018, an increase of 7.8%, or $31.2 million, from $400.3 million for the same period of 2017. The increase in net revenues was  primarily due to an increase in Las Vegas operations, partially offset by a decrease in Native American management fees due to the expiration of the Gun Lake management agreement in February of 2018.

Net income was $13.2 million for the fourth quarter of 2018, a decrease of 71.3%, or $32.8 million, from $46.0 million for the same period of 2017. The decrease in net income was primarily due to an after-tax decrease in the fair value of derivative instruments of $23.9 million.  These results also reflect an out-of-period, one-time, non-cash adjustment related to a lease obligation regarding our corporate office building that increased interest expense by $9.3 million and decreased net income by $8.6 million.

Adjusted EBITDA was $135.1 million for the fourth quarter of 2018, an increase of 10.1%, or $12.4 million, from $122.7 million in the same period of 2017. The increase in Adjusted EBITDA was primarily due to an increase in Las Vegas operations, partially offset by a decrease in Native American management fees due to the Gun Lake expiration.

For the full year, net revenues were $1.68 billion in 2018, an increase of 2.4%, or $38.9 million, from $1.64 billion for the same period of 2017.  The increase in net revenues was primarily due to a $69.6 million increase in Las Vegas operations, partially offset by a $31.0 million decrease in Native American operations due to the Gun Lake expiration.

For the full year, net income was $219.5 million in 2018, compared to $63.5 million for the same period of 2017. The increase in net income was primarily due to a gain associated with the extinguishment of tax receivable liabilities, as well as a prior year loss associated with the acquisition of the leases at Boulder Station and Texas Station.

For the full year, Adjusted EBITDA was $509.0 million in 2018, an increase of 2.4%, or $11.7 million, from $497.2 million in 2017, primarily due to a $23.7 million increase in Las Vegas operations, partially offset by a $15.1 million decrease in Native American operations due to the Gun Lake expiration.

Las Vegas Operations

Net revenues from Las Vegas operations were $409.5 million for the fourth quarter of 2018, an increase of 10.4%, or $38.5 million, from $371.0 million in the same period of 2017.  Adjusted EBITDA from Las Vegas operations was $121.0 million for the fourth quarter of 2018, an increase of 14.4%, or $15.2 million, from $105.8 million in the same period of 2017.

Native American Management

Adjusted EBITDA from Native American operations was $19.1 million for the fourth quarter of 2018, a 22.1% decrease from $24.5 million in the same period of 2017.  The decrease was primarily due to the Gun Lake expiration, partially offset by increased management fees generated under the Graton Resort management agreement.

Palace Station and Palms Redevelopment Update

The Palace Station redevelopment project was completed on schedule and on budget with all aspects of the project open as of the end of 2018.  As of December 31, 2018, the Company has incurred $188 million in costs against the budget of $191 million.

The Palms redevelopment project remains on schedule and the budget remains unchanged with the remaining components of phase two expected to be complete in the second quarter of 2019 and phase three expected to be complete in the third quarter of 2019.  As of December 31, 2018, the Company has incurred approximately $430 million in costs against the $690 million project.

Balance Sheet Highlights

The Company’s cash and cash equivalents at December 31, 2018 were $114.6 million and total principal amount of debt outstanding at the end of the fourth quarter was $2.91 billion. The Company’s debt to Adjusted EBITDA and interest coverage ratios were 5.0x and 4.4x, respectively.

Quarterly Dividend

The Company’s Board of Directors has declared a cash dividend of $0.10 per Class A common share for the first quarter of 2019. The dividend will be payable on March 29, 2019 to all stockholders of record as of the close of business on March 14, 2019.

Prior to the payment of such dividend, Station Holdco LLC (“Station Holdco”) will make a cash distribution to all unit holders of record, including the Company, of $0.10 per unit for a total distribution of approximately $11.7 million, approximately $7.0 million of which is expected to be distributed to the Company and approximately $4.7 million of which is expected to be distributed to the other unit holders of record of Station Holdco.

Conference Call Information

The Company will host a conference call today at 4:30 p.m. Eastern Time to discuss its financial results. The conference call will consist of prepared remarks from the Company and include a question and answer session.  Those interested in participating in the call should dial (888) 317-6003, or (412) 317-6061 for international callers, approximately 15 minutes before the call start time.  Please use the passcode: 4563756. A replay of the call will be available from today through February 20, 2019 at www.redrockresorts.com.

Presentation of Financial Information

(1) Adjusted EBITDA is a non-GAAP measure that is presented solely as a supplemental disclosure. We believe that Adjusted EBITDA is a widely used measure of operating performance in our industry and is a principal basis for valuation of gaming companies. We believe that in addition to net income, Adjusted EBITDA is a useful financial performance measurement for assessing our operating performance because it provides information about the performance of our ongoing core operations excluding non-cash expenses, financing costs, and other non-operational or non-recurring items. Adjusted EBITDA includes net income plus depreciation and amortization, share-based compensation, write-downs and other charges, net, tax receivable agreement liability adjustment, related party lease termination, asset impairment, interest expense, net, loss on extinguishment/modification of debt, net, change in fair value of derivative instruments, provision for income tax and other, and excludes Adjusted EBITDA attributable to the noncontrolling interests of MPM.

Company Information and Forward Looking Statements

Red Rock Resorts owns a majority indirect equity interest in and manages Station Casinos LLC (“Station Casinos”). Station Casinos is the leading provider of gaming and entertainment to the residents of Las Vegas, Nevada.  Station Casinos’ properties, which are located throughout the Las Vegas valley, are regional entertainment destinations and include various amenities, including numerous restaurants, entertainment venues, movie theaters, bowling and convention/banquet space, as well as traditional casino gaming offerings such as video poker, slot machines, table games, bingo and race and sports wagering.  Station Casinos owns and operates Red Rock Casino Resort Spa, Green Valley Ranch Resort Spa Casino, Palms Casino Resort, Palace Station Hotel & Casino, Boulder Station Hotel & Casino, Sunset Station Hotel & Casino, Santa Fe Station Hotel & Casino, Texas Station Gambling Hall & Hotel, Fiesta Rancho Casino Hotel, Fiesta Henderson Casino Hotel, Wildfire Rancho, Wildfire Boulder, Wild Wild West Gambling Hall & Hotel, Wildfire Sunset, Wildfire Valley View, Wildfire Anthem and Wildfire Lake Mead.  Station Casinos also owns a 50% interest in Barley’s Casino & Brewing Company, Wildfire Casino & Lanes and The Greens.  In addition, Station Casinos is the manager of Graton Resort & Casino in northern California.

This press release contains certain forward-looking statements with respect to the Company and its subsidiaries which involve risks and uncertainties that cannot be predicted or quantified, and consequently, actual results may differ materially from those expressed or implied herein.  Such risks and uncertainties include, but are not limited to the effects of the economy and business conditions on consumer spending and our business; competition, including the risk that new gaming licenses or gaming activities are approved; our substantial outstanding indebtedness and the effect of our significant debt service requirements; our ability to refinance our outstanding indebtedness and obtain necessary capital; the impact of extensive regulation; risks associated with changes to applicable gaming and tax laws; risks associated with development, construction and management of new projects or the redevelopment or expansion of existing facilities; and other risks described in the filings of the Company with the Securities and Exchange Commission.  In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law.  If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.

 

Red Rock Resorts, Inc.

Consolidated Statements of Income

(amounts in thousands, except per share data)

(unaudited)



















Three Months Ended

December 31,



Year Ended

December 31,



2018



2017



2018



2017

Operating revenues:















Casino

$ 240,757



$ 221,763



$  940,483



$  886,206

Food and beverage

100,971



87,995



381,197



365,448

Room

42,169



39,640



170,824



179,041

Other

27,054



22,940



100,912



92,967

Management fees

20,520



27,972



87,614



118,477

Net revenues

431,471



400,310



1,681,030



1,642,139

Operating costs and expenses:















Casino

84,854



79,388



326,980



311,086

Food and beverage

87,892



78,406



340,212



326,069

Room

19,314



19,297



78,440



81,768

Other

14,320



10,074



48,431



40,332

Selling, general and administrative

92,952



92,215



390,492



380,930

Depreciation and amortization

46,864



43,496



180,255



178,217

Write-downs and other charges, net

13,580



3,653



34,650



29,584

Tax receivable agreement liability adjustment

(263)



(139,070)



(90,638)



(139,300)

Related party lease termination







100,343

Asset impairment







1,829



359,513



187,459



1,308,822



1,310,858

Operating income

71,958



212,851



372,208



331,281

Earnings from joint ventures

579



390



2,185



1,632

Operating income and earnings from joint ventures

72,537



213,241



374,393



332,913

















Other (expense) income:















Interest expense, net

(46,800)



(31,315)



(143,099)



(131,442)

Loss on extinguishment/modification of debt, net



(13,355)





(16,907)

Change in fair value of derivative instruments

(14,938)



11,053



12,415



14,112

Other

(67)



(99)



(354)



(357)



(61,805)



(33,716)



(131,038)



(134,594)

Income before income tax

10,732



179,525



243,355



198,319

Benefit (provision) for income tax

2,449



(133,556)



(23,875)



(134,786)

Net income

13,181



45,969



219,480



63,533

Less: net income attributable to noncontrolling interests

4,235



16,497



61,939



28,110

Net income attributable to Red Rock Resorts, Inc.

$     8,946



$   29,472



$  157,541



$    35,423

















Earnings per common share:















Earnings per share of Class A common stock, basic

$       0.13



$       0.43



$        2.28



$        0.53

Earnings per share of Class A common stock, diluted

$       0.11



$       0.35



$        1.77



$        0.42

















Weighted-average common shares outstanding:















Basic

69,283



68,486



69,115



67,397

Diluted

116,414



116,274



116,859



115,930

















Dividends declared per common share

$       0.10



$       0.10



$        0.40



$        0.40

Red Rock Resorts, Inc.

Segment Information and Reconciliation of Net Income to Adjusted EBITDA

(amounts in thousands)

(unaudited)



















Three Months Ended

December 31,



Year Ended

December 31,



2018



2017



2018



2017

Net revenues















Las Vegas operations

$ 409,483



$ 370,985



$ 1,588,003



$ 1,518,442

Native American management

20,365



27,842



87,009



117,968

Reportable segment net revenues

429,848



398,827



1,675,012



1,636,410

Corporate and other

1,623



1,483



6,018



5,729

Net revenues

$ 431,471



$ 400,310



$ 1,681,030



$ 1,642,139

















Net income

$   13,181



$   45,969



$    219,480



$      63,533

Adjustments















Depreciation and amortization

46,864



43,496



180,255



178,217

Share-based compensation

2,417



2,195



11,289



7,922

Write-downs and other charges, net

13,580



3,653



34,650



29,584

Tax receivable agreement liability adjustment

(263)



(139,070)



(90,638)



(139,300)

Related party lease termination







100,343

Asset impairment







1,829

Interest expense, net

46,800



31,315



143,099



131,442

Loss on extinguishment/modification of debt, net



13,355





16,907

Change in fair value of derivative instruments

14,938



(11,053)



(12,415)



(14,112)

Adjusted EBITDA attributable to MPM noncontrolling interest



(1,780)



(962)



(15,262)

(Benefit) provision for income tax

(2,449)



133,556



23,875



134,786

Other

67



1,099



329



1,357

Adjusted EBITDA

$ 135,135



$ 122,735



$    508,962



$    497,246

















Adjusted EBITDA















Las Vegas operations

$ 120,971



$ 105,790



$    457,379



$    433,640

Native American management

19,124



24,548



80,795



95,897

Reportable segment Adjusted EBITDA

140,095



130,338



538,174



529,537

Corporate and other

(4,960)



(7,603)



(29,212)



(32,291)

Adjusted EBITDA

$ 135,135



$ 122,735



$    508,962



$    497,246

 

Source: Red Rock Resorts, Inc.

 


Source: Latest News on European Gaming Media Network
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: Red Rock Resorts Announces Fourth Quarter and Year End 2018 Results

George Miller (Gyorgy Molnar) started his career in content marketing and has started working as an Editor/Content Manager for our company in 2016. George has acquired many experiences when it comes to interviews and newsworthy content becoming Head of Content in 2017. He is responsible for the news being shared on multiple websites that are part of the European Gaming Media Network.

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SmartSoft’s 2024 Story – Year of Growth and Success

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This year has been an exciting journey for SmartSoft. Both internally and externally, the company has undergone significant transformation. SmartSoft continues to pursue ambitious goals driven by teamwork and unity. The company fosters a culture of collaboration, where team members and partners support one another, share objectives, and work towards common interests. This synergy is powered by a diverse group of individuals, united by a shared mission to redefine the iGaming industry.
As a result, the number of unique customers grew by an impressive 75%—a remarkable achievement.

So, how did SmartSoft achieve such success?

Team Expansion and User Growth

SmartSoft made great progress this year by adding 40 new team members, strengthening its skills and knowledge across different areas. This expansion helped create a more dynamic work environment and played a key role in improving the company’s overall performance. As a result, SmartSoft saw an impressive 75% growth in unique users compared to last year. This increase in users highlights the company’s growing global reach, its ability to attract a wide audience, and its commitment to offering exciting and innovative gaming experiences.

New Markets and Partnerships

This year, SmartSoft made remarkable strides by entering 25 new markets, significantly enhancing its global footprint. The company also established several strategic partnerships with leading operators and platforms, including Betfair, Betway, Stoiximan, Betnacional, LottoStar, Betmexico and Qtech. These collaborations are expected to unlock new opportunities and open doors to fresh audiences worldwide. SmartSoft is excited about the direction these partnerships will take, and more details about these ventures will be shared soon.

 

JetX’s Unstoppable Rise

Also, JetX as SmartSoft’s flagship and pioneer crash game proved that its actually top game not only for SmartSoft but in the whole iGaming industry – its users rose by 80% which is a great number to imagine.
If there’s anyone still unfamiliar with JetX, it was the pioneer crash game developed by SmartSoft. Since its launch, JetX achieved extraordinary success, becoming a favorite among players and partners alike. The game is always evolving with regular updates, as the SmartSoft team constantly works to make it even better. Its innovative gameplay, which challenges players to cash out at just the right moment, captivated audiences worldwide. Breaking records and redefining expectations. The continued rise of JetX signifies the company’s ongoing commitment to offering exciting, innovative, and highly engaging products to its users.

Performance of Top Games

SmartSoft’s portfolio of top games saw incredible engagement, with a great increase in user participation across its leading titles, including Balloon, Mine Island, HelicopterX, PlinkoX, and FootballX. This phenomenal growth demonstrates that the company’s gaming offerings are not just popular but are setting industry benchmarks for user interaction and satisfaction. It’s clear that SmartSoft’s games are playing a key role in redefining the entertainment experience for players worldwide.

 

Exciting New Games

This year, SmartSoft introduced a total of 18 new games, including three games and slot games, all designed to offer players a unique and immersive experience. Some of the most anticipated releases included:

  • 4 Bonuses Bonanza – Plinko Spin
  • Mad Slot
  • Rodeo X
  • Dracula’s Fortune
  • Jungle Sisters Deluxe
  • Samba da Deusa

These new games have attracted more than 2 million new users, underscoring their appeal and the growing demand for SmartSoft’s innovative approach to gaming. The diverse range of titles further strengthens SmartSoft’s position as a leader in the gaming industry, offering games tailored to every interest.

Partnerships and Sponsorships

SmartSoft strengthened its position in the global market by extending its partnership with the Argentine National Team. This collaboration now includes SmartSoft becoming the Official Crash Game Partner. Sponsoring the Argentine national team and being a member of the World Champions Family is proof of SmartSoft’s commitment. Through these initiatives, company aims to spread the spirit of football, which brings people together and fosters a sense of community. Through this renewal in 2024 with the Argentine Football Association and the Argentine National Team, SmartSoft continued on a journey that combined passion and excellence, where the worlds of business and gaming converged with the magic of Argentine football. The company expressed delight in continuing as the gaming partner in Europe for the Argentine National Team and voiced confidence that this collaboration would drive both the company and its games to new horizons. Additionally, plans were announced for new content and marketing actions featuring the stars of the national team.

 

 

Memorable Moments and Extraordinary Partnerships

2024 was a year of remarkable achievements and unforgettable experiences for SmartSoft. The company participated in 8 major industry exhibitions, earning prestigious nominations such as Best Innovator, Best Interactive Experience, and Best Crash Game. Beyond the awards, SmartSoft cemented its reputation for innovation and connection through extraordinary events and partnerships. The Legend Series brought partners face-to-face with football legends like Zanetti, Palacio, and Milito, while an exclusive Champions League experience in London with José Mourinho left lasting impressions. In Lisbon, partners enjoyed the privilege of meeting Javier Mascherano at the SmartSoft booth and engaging in personal conversations during a special dinner. The collaboration with the Argentine national football team reached new heights with an in-depth interview with Lionel Scaloni, offering an insightful glimpse into the team’s journey. Further strengthening its connection to the sports world, SmartSoft proudly partnered with Georgian football legend Shota Arveladze, strengthening its ties to the sports world and bringing people even closer together.

Additionally, the launch of the Partners’ Club during a three-day celebration in Georgia showcased the company’s commitment to fostering collaboration and shared success.

Licensing Achievements

SmartSoft reached several important licensing milestones in 2024, underscoring its commitment to expanding its global operations while adhering to regulatory standards. The company’s Greek license, originally obtained in 2023, became fully operational this year, allowing SmartSoft to expand its reach in the European market. The company also achieved authorizations in Peru and obtained compliance certification in South Africa, further strengthening its position in these growing markets.

Certifications

SmartSoft earned 79 new certifications in 2024, an impressive achievement that reflects the company’s dedication to maintaining the highest standards in the industry. These certifications cover a wide range of areas, reinforcing SmartSoft’s commitment to delivering top-tier products that meet international quality and regulatory standards.

Looking Forward

The year 2024 was one of remarkable growth, innovation, and unforgettable achievements for SmartSoft. As the company continues to build on this momentum, it remains committed to delivering exceptional entertainment experiences, expanding into new markets, and redefining the gaming landscape. SmartSoft is excited about what the future holds and is looking forward to further strengthening its position as an industry leader in the years to come.

As we step into the new year, SmartSoft continues to soar, staying true to its motto: Keep Flying Even Higher.

The post SmartSoft’s 2024 Story – Year of Growth and Success appeared first on European Gaming Industry News.

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Prague Gaming & TECH Summit 2025: The Must-Attend Event of the Year for Gaming and Tech Enthusiasts

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The Prague Gaming & TECH Summit 2025, happening on 25–26 March, is shaping up to be one of the most anticipated events in the gaming and tech calendar. Set in the heart of Europe, this boutique-style conference is renowned for delivering cutting-edge insights, fostering meaningful networking, and tackling the industry’s most pressing challenges.

Key Highlights of the 2025 Agenda

This year, the summit promises a robust agenda that combines the latest in innovation with actionable strategies for growth. Attendees can look forward to:

  • AI and Blockchain Innovations: Explore how artificial intelligence and blockchain are transforming operations, enhancing security, and redefining user experiences.
  • Regulatory Challenges and Compliance: Stay ahead of the curve with expert insights into navigating Europe’s evolving regulatory landscape.
  • Fintech Advancements: Learn about the latest payment solutions and technologies driving seamless transactions and user satisfaction.
  • Sustainability & ESG Initiatives: Discover how the gaming and tech industries are embracing sustainability and responsible business practices.

Global Reach Without Leaving Europe

One of the standout features of this year’s summit is the dedicated panels on Latin America and North America. These sessions bring insights from two of the most dynamic gaming markets directly to European attendees. No need for long-haul flights—gain valuable knowledge from industry leaders as they discuss trends, opportunities, and challenges in these regions.

Networking in the Golden City

Prague’s status as a vibrant business hub and cultural gem makes it the perfect backdrop for this gathering. The event offers ample networking opportunities, from structured meetups to informal conversations, ensuring every attendee can connect with peers, industry leaders, and potential partners.

Why Attend the Prague Gaming & TECH Summit?

  • Exclusive Access to Thought Leaders: Hear from speakers shaping the future of gaming and tech.
  • Tailored Content: Topics designed to address regional and global industry needs.
  • Hands-On Workshops: Gain practical insights to tackle real-world challenges.
  • Boutique Atmosphere: A focus on quality over quantity ensures meaningful engagement.

The Prague Gaming & TECH Summit is more than just a conference—it’s an opportunity to be part of the conversations that will shape the future of gaming and technology.

👉 Register now and join us in the Golden City this March to be part of the innovation.

The post Prague Gaming & TECH Summit 2025: The Must-Attend Event of the Year for Gaming and Tech Enthusiasts appeared first on European Gaming Industry News.

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NBA star Tristan Thompson signs for Sportsbet.io

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NBA superstar Tristan Thompson is the latest big name to partner with Sportsbet.io, the world’s favorite crypto-first sports betting site, as its newest global ambassador.

Thompson, a Cleveland Cavaliers center and 2016 NBA Championship winner, will bring his star power and passion for cryptocurrency to the Sportsbet.io community for the next two years.

The Canadian basketball legend will be sharing his views on the latest action for Sportsbet.io, where fans will have the opportunity to take part in some exclusive promotions.

Tristan Thompson, Sportsbet.io ambassador, said: “Sportsbet.io brings together my two biggest passions: sports and cryptocurrency. I’ve been following the crypto sector for some time now and have seen how transformative it can be. There’s no better place to combine that with my love of sports than Sportsbet.io.”

Shane Anderson, Director Partnership, Content and Brand, Yolo Entertainment, the operator of Sportsbet.io, added: “We’d like to give a huge Sportsbet.io welcome to Tristan, an elite athlete whose passion for both basketball and cryptocurrency makes him a perfect match for us. We’re thrilled to have him on the team, and we already have some exciting plans in the works. Watch this space.”

Thompson’s crypto credentials are already well established; he’s been a vocal supporter of Bitcoin, and recently celebrated as it reached a new all-time high in price.

He will be providing weekly betting tips on a range of sports, including NFL, MLB, European soccer, tennis, golf, UFC and boxing.

The partnership with Thompson marks another exciting new chapter for Sportsbet.io, which has earned a reputation for both its innovative approach to gaming, and its star-studded line-up of ambassadors, including cricket legend Brett Lee, Kenyan rapper King Kaka and many more.

Sportsbet.io is also an official partner of LALIGA and Newcastle United.

The post NBA star Tristan Thompson signs for Sportsbet.io appeared first on European Gaming Industry News.

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