Mohegan Gaming & Entertainment (MGE) unveiled on Thursday overall net revenues of $417 million in its third fiscal quarter ended June 30. The figure represents a year-over-year increase of 27.1%; while the adjusted EBITDA of $120 million saw an increase of 18%.
These improvements were due to “strong performance” at the company’s owned properties and the addition of the new MGE Digital division. In constant, volumes for the prior comparable period were negatively impacted by various COVID-19-related restrictions, including the closure of the MGE Niagara Resorts for the entire period, the closure of Mohegan Sun Pocono for three days, and self-imposed capacity limitations at Mohegan Sun.
Raymond Pineault, Chief Executive Officer of Mohegan, said: “Our consolidated Adjusted EBITDA of $120 million was the highest quarterly total in our 25-year history. This was the first full fiscal quarter of operations without COVID-19 restrictions at MGE Niagara Resorts since the pandemic first closed the property in March of 2020, and Mohegan Digital continues to execute a strategy that is focused on profitability. These results reflect the success of Mohegan’s diversification strategies.”
Carol Anderson, Chief Financial Officer of MGE, also noted: “The consolidated Adjusted EBITDA margin of 28.8% was 529 basis points higher than the pre-COVID comparable fiscal 2019 quarter. Compared to the fiscal 2021 quarter, the Adjusted EBITDA margin has declined due to the continued reintroduction of some lower margin non-gaming amenities since the prior-year period.”
Mohegan Sun in Connecticut
The Mohegan Sun flagship property in Connecticut generated $236.4 million in net revenue and $58.68 million in profit in the three months ended June 30. Net revenue was up 7.5% over the same period last year while profit, or net income, was down 9.5%. In the US, MGE also operates casinos in Pennsylvania, Washington, Nevada, and New Jersey. In Canada, it runs MGE Niagara Resorts in Ontario.
Mohegan Sun Pocono, in Pennsylvania
Mohegan Sun Pocono saw revenues of $66.7 million and $10.18 million in profit in the third quarter of its fiscal year. Net revenue saw a year-over-year increase of 6.1%, while net profit or net income was a slight 0.4% down. The results were attributed primarily to an increase in non-gaming revenue as well as slot volumes.
Mohegan Casino in Niagara
MGE Niagara Resorts saw the most drastic revenue change during the quarter, generating $79.6 million in revenue, which was a rise of 453.7% year-over-year. According to the company, the favorable change in revenue was because it was the first quarter that MGE Niagara Falls operated restriction-free.
Combined revenue from Mohegan’s online casino and sports wagering segment, along with the Mohegan Sun Las Vegas, totaled $18.7 million. This was a rise of 124.5%.
In terms of the overall revenue, gaming made the highest contribution, at $293.9 million. Retail, entertainment, and other revenue contributed $57.2 million, while food and beverage revenue came to $35.6 million. Additionally, revenue from hotels was $30.2 million.
Operating costs for the quarter totaled $326.9 million, up by 25.1% yearly. Gaming incurred the highest cost, at $139.7 million. Advertising, general and administrative expenses totaled $79.3 million, while depreciation and amortization costs amounted to $26 million. The remaining cost was made up of hotel, food and beverage, and other expenses. The operating income totaled $90.1 million, up by 40.7% yearly.
