Question · Q3 2025
Jordan Maxwell Bender asked about the factors contributing to the improvement in casino margins to over two-year highs, questioning if it's due to mix, Durango's ramp, or other reasons, and if these levels are sustainable. He also inquired about the rationale behind the one-penny increase in the quarterly dividend.
Answer
Scott Kreeger (President, Red Rock Resorts Inc) attributed improved casino margins to a post-COVID shift in market approach, focusing on high-limit areas and attracting high-end value customers, combined with effective expense management. Stephen Cootey (EVP, CFO, and Treasurer, Red Rock Resorts Inc) explained that the board recognized the business's continued strength and long-term earnings power, setting a "whole number" increase ($0.04 annually) and allowing for future reevaluation of dividend increases quarterly.