Mohegan Gaming and Entertainment reported a strong performance as the integrated resort developer and operator with Connecticut headquarters, publishes operating results for its first fiscal quarter ended December 31, 2019.
Amongst all the expansions targeted across South Korea and Greece through Inspire Entertainment Resort in Incheon and Inspire Athens, consolidated net income for the firm increased 24.9 percent driven primarily by MGE Niagara Resorts’ recent acquisition.
Mohegan Sun Pocono has guided revenue increases on a similar basis, as well as continuing strong performance from non-gaming revenue growth, including entertainment and hotel sales at Mohegan Sun, partly balanced by lower gaming volumes at the property.
Adjusted EBITDA rose 4.5 percent over the quarter, reflecting previously noted contributions in addition to stronger management and development segment EBITDA.
Adjusted for the impact of MGE Niagara Resorts, however, the overall adjusted EBITDA is said to have remained flat with the first quarter of the previous year, with margins above the level of the previous year, reflecting the positive impact on the underlying core business of revenue enhancements and expenditure control.
“I am pleased to report that fiscal 2020 is off to a solid start with consolidated first-quarter revenues and Adjusted EBITDA above prior year results, driven by the strong year over year growth in revenue and Adjusted EBITDA at Mohegan Sun Pocono and the inclusion of MGE Niagara Resorts,” explained Mario Kontomerkos, president and chief executive officer of MGE.
“Importantly, on a like for like basis, excluding the positive contribution of MGE Niagara Resorts, overall adjusted EBITDA was roughly flat with the prior year while overall adjusted EBITDA margins improved, a remarkable achievement considering the competitive pressures in the northeast region over the last 18 months.
“Performance at our flagship property Mohegan Sun was strong due to better expense management and continued strong performance in non-gaming segments, highlighted by our recent hosting of the Miss America competition.
“Looking beyond the United States, construction is progressing on-time and on-budget in Inspire Korea, while the integration of the MGE Niagara Resorts progresses well despite the impact of lower table hold rates and adverse weather in the quarter. Finally, our expansion into Las Vegas took a large step forward this week, as MGE and our partner Virgin Hotels began the renovation of the future Virgin Hotels Las Vegas set to open in late 2020.”