Connecticut-based operator Mohegan Gaming & Entertainment on Tuesday said its property portfolio “performed remarkably well” during its fiscal fourth quarter, despite COVID-related reductions in capacity and entertainment offerings.
MGE operates several resorts, including Mohegan Sun in Uncasville, Connecticut, Mohegan Sun Pocono in Plains Township, Pennsylvania, the MGE Niagara Resorts in Niagara Falls, Canada, and INSPIRE Entertainment Resort in Incheon, South Korea. The company’s fourth fiscal quarter ended Sept. 30, 2020.
The bad news: overall revenue for the company was $294m during the most recent quarter, down 29% from the $414m it reported in the same quarter last year. Adjusted EBITDA was $82.8m versus $89.4m in the prior year period, a decrease of 7.4%.
Better news: Income from operations was $50.2m during Q4 FY 2020, up 219.7% from the comparable quarter in FY 2019.
The company attributed the decline in net revenue to the continued closure of MGE Niagara Resorts, plus declines in retail, food and beverage, and entertainment revenue at Mohegan Sun and Mohegan Pocono, all due to COVID closures or protocols. It said the decline in revenue was partially offset by positive growth in gaming revenues at Mohegan Sun.
Adjusted EBITDA decreased 7.4% during the quarter, due to the continued closure of MGE Niagara Resorts. Excluding the impact of Niagara Resorts, consolidated net revenue decreased by 12.8% and Adjusted EBITDA increased 15.9%.
“Despite re-opening the majority of our properties in the summer with COVID-related reductions in capacity and entertainment offerings, consolidated Adjusted EBITDA for the September quarter was only down modestly compared to last year,” Mario Kontomerkos, President and Chief Executive Officer of MGE, said in a statement.
“Looking beyond the virus, however, we remain quite positive as our business has been optimized to benefit from what we foresee to be significant pent-up demand for leisure consumption in the months and years ahead,” he added.