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Despite revenues falling short of the same period two years ago, Mohegan Gaming & Entertainment has complimented a quarter that it says was “indicative of the continued recovery” of its US gaming operations.
After praising MGE earlier this year for “an important quarter in the evolution,” net revenue for the third fiscal quarter ended June 30, 2021, totaled $328.2 million, up 206.1 percent from $107.2 million the previous year.
The $64 million in income from operations contrasts with a $20.5 million loss in 2020, as adjusted EBITDA increased to $101.7 million from $8.4 million, owing to company-wide COVID-related property closures in 2020.
Consolidated net revenues fell 5.6 percent to $347.6 million in the third quarter of 2019, although income from operations and adjusted EBITDA climbed 15.9 percent and 24.6 percent to $55.2 million and $81.6 million, respectively.
While fewer operating costs and expenses, such as lower personnel costs and marketing expenses, helped to boost adjusted EBITDA, net sales were nonetheless hurt by the COVID-related closure of MGE Niagara Resorts and state-mandated social distancing practises at the company’s other properties.
Raymond Pineault, CEO of MGE said: “Another quarter of strong results demonstrates that MGE remains well positioned as we continue to emerge from the pandemic.
“In addition, we recently announced Mohegan Digital, which will provide leading 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 23rd after just over 16 months of closure due to COVID restrictions in Ontario.”
Due to improved traffic, strong gaming trends, and the elimination of the final remaining COVID-related limitations on May 19, revenue at the group’s flagship Mohegan Sun resort jumped 181.3 percent to $220 million (2020: $78.23 million).
Mohegan Sun Pocono in Pennsylvania benefited from the removal of COVID-19 restrictions, bringing in $62.93 million (2020: $10.51 million), while MGE Niagara Resorts reopened with two days of invited guests only events on July 21st and 22nd, and to the public on July 23rd, bringing in $14.38 million (2020: $11.34 million).
Management, development, and other operational outcomes revenue increased to $21.78 million (2020: $6.54 million), owing to an increase in ilani management fees and fees generated from the management of Paragon Casino Resort.
Mohegan Sun Casino Las Vegas, which opened to the public on March 25, 2021, also had its first full fiscal operational quarter in the third quarter of 2021, with revenue of $8.36 million.
Generating positive results
MGE CFO Carol Anderson 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 revenues were below third quarter 2019 levels, which is the closest comparable due to property closures in the third quarter of 2020, Adjusted EBITDA was $82.4m, 22.5 per cent favourable 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.”