Mohegan Gaming & Entertainment, a developer and operator of international branded entertainment resorts including Mohegan Sun in Uncasville, Connecticut, Niagara Fallsview Casino Resort in Niagara Falls, Ontario, and Inspire Korea in Incheon, South Korea, released its Q4 operating results for the period ended September 30, 2019.
Net revenues for the quarter were $414 million compared to $347.2 million year-on-year, a rise of 19.2%. Yet operating income dropped significantly from $69.6 m to $15.7 m year-on-year by 77.4 percent. The decline was driven primarily by Mohegan Sun Pocono’s impairment charge, the firm said. Adjusted $89.4 million EBITDA also dropped from $94.5 million year-on-year, down 5.4%.
Consolidated net income increased 19.2 percent, led by Niagara resorts ‘ positive contribution and continued out performance from non-gaming revenue growth, including Mohegan Sun’s entertainment and hotel sales. In both Mohegan Sun and Mohegan Sun Pocono, these were partially offset by lower playing rates.
“MGE had a remarkable fiscal fourth quarter given the inclusion of two new competitors in our primary northeast market in the last 15 months, and we are off to a good start thus far in the first quarter of fiscal 2020 as well,” said Mario Kontomerkos, President and CEO.
“These strong results can be attributed to a commendable management effort by our property leadership as well as our first full quarter of operations from our Niagara resorts. Outside of North America, project Inspire in South Korea continues under construction and remains on track for a 2022 opening.
“In connection with Inspire, we are pleased to announce our partnership with Hanwha Corporation, one of the country’s largest conglomerates, who will serve as our primary general contractor and will also provide the project with important local operational expertise and credit enhancement. These domestic and international efforts, which also include the September announcement of our venture with Virgin Hotels in Las Vegas, have placed MGE on solid ground for success for generations to come.”