Mohegan Gaming & Entertainment, a developer and operator of global integrated entertainment resorts, on Tuesday reported operating results for its third fiscal quarter, a three-month period ending June 30.
Connecticut-based MGE said it had net revenue of $328.2m in the recently-concluded quarter, versus $107.2m in the prior year period, a 206.1% increase.
Income from operations was $64.0m, versus a loss from operations of $20.5m, and adjusted EBITDA was $101.7m, up 1,111.2% from $8.4m in the same quarter one year earlier.
MGE noted the year-over-year improvements were in relation to company-wide Covid-related property closures in 2020.When compared to the third quarter of 2019, MGE said consolidated net revenue declined 5.6%, while adjusted EBITDA increased 24.6%.
According to a statement issued by the company, its adjusted EBITDA improvement was largely driven by reductions in operating costs and expenses, including lower payroll costs and marketing expenses. However, net revenue continued to be impacted by the Covid-related closure of MGE Niagara Resorts and state-mandated social distancing protocols at the company's other properties.
Excluding the impact of the closure of MGE Niagara Resorts for the full quarter and adjusting primarily for table hold, the company said its adjusted EBITDA margin would have been 33.9% for the quarter, up 707 basis points from 26.8% in the third quarter of 2019.
“Another quarter of strong results demonstrates that MGE remains well positioned as we continue to emerge from the pandemic,”CEO Raymond Pineault said in a statement. “In addition, we recently announced Mohegan Digital, which will provide sports betting and digital gaming solutions to our loyal customers and attract new customers on a broader scale. This new business line will diversify our future revenue streams and contribute to the financial stability of MGE. Finally, MGE Niagara Resorts reopened to the public on July 23 after just over 16 months of closure due to Covid restrictions in Ontario.”
Carol Anderson, chief financial officer, added, “These results are indicative of the continued recovery as most remaining Covid-related restrictions were lifted at our United States properties during the quarter. At our flagship property Mohegan Sun, while revenue was below third quarter 2019 levels, which is the closest comparable due to property closures in the third quarter of 2020, adjusted EBITDA was $82.4 million, 22.5% favorable to the third quarter of 2019, and EBITDA margin was up 1,065 basis points over the same period. Outside of Connecticut, ilani in Washington State continues to perform ahead of expectations, and Mohegan Sun Pocono, Mohegan Sun Las Vegas and Resorts are generating positive results.”
MGE resorts include Mohegan Sun in Uncasville, Connecticut, Inspire in Incheon, South Korea and Niagara Casinos in Niagara, Canada. MGE is owner, developer, and/or manager of integrated entertainment resorts throughout the United States, including Connecticut, New Jersey, Washington, Pennsylvania, as well as Northern Asia, Niagara Falls, Canada and Las Vegas, Nevada. MGE is owner and operator of Connecticut Sun, a professional basketball team in the WNBA.
