Mohegan Gaming and Entertainment, a developer and operator of global integrated entertainment resorts, on Thursday reported a year-over-year decline in net revenue during its second fiscal quarter, a three-month period ending March 31.
MGE’s properties include Mohegan Sun in Uncasville, Connecticut, Mohegan Sun Pocono in Plains Township, Pennsylvania, the MGE Niagara Resorts in Niagara Falls, Canada, the Mohegan Sun Casino at Virgin Hotels Las Vegas in Nevada (pictured), and INSPIRE Entertainment Resort in Incheon, South Korea.
The company said it had $278.6m in net revenue during FY Q2 2021, an 11.5% decrease from the $314.7m in net revenue it posted in Q2 2020.
Income from operations for the just-completed quarter was $44.9m, a positive swing from a loss from operations of $106.3m in the prior year period, which MGE said was due primarily to a $126.6m impairment charge at Mohegan Sun Pocono.
On a positive note, however, adjusted EBITDA for FY Q2 2021 was $80.7m, up 57.3% from $51.3m in the same quarter last year.
“The March quarter was important in the evolution of MGE, as we opened the Mohegan Sun Casino at Virgin Hotels Las Vegas, representing MGE's latest expansion and entry in the significant Las Vegas market,” Raymond Pineault, Interim CEO, said in a statement. “Continuing the trend of firsts, MGE, in partnership with the governor of the State of Connecticut and the Mashantucket Pequot Tribe, reached an agreement to allow online gaming and retail and mobile sports betting, which, when approved by the Connecticut Legislature, would expand MGE's online footprint while providing further diversification to our business.”
Late in the quarter, MGE's INSPIRE project in Incheon, South Korea, received an important approval from South Korea's Ministry of Culture, Sports and Tourism, which Pineault said clears the path to obtain financing for the project.
Carol Anderson, chief financial officer for Mohegan Gaming, added: “In the United States, our properties have continued to recover, as the rate of vaccinations increases and states continue to ease some Covid-related restrictions. At our flagship property, Mohegan Sun, while revenue was below second quarter 2019 levels, which is the closest comparable due to property closures in the second quarter of 2020, Adjusted EBITDA was $70 million, 17.9% favorable to the second quarter of 2019, while EBITDA margin was up 1,212 bps over the same period.”
Outside of Connecticut, Anderson reported performance at ilani in Washington state “continues to surpass expectations,” while Mohegan Sun Pocono and Resorts are seeing positive sequential momentum.
“Finally, we look forward to reopening the MGE Niagara Resorts as soon as we are given approval from the government,” Anderson said.