It is the time of year for fiscal reports. The Q4 numbers are in for Mohegan Gaming & Entertainment, ending September 31.
The master developer and operator of premier global integrated entertainment resorts includes Mohegan Sun in Uncasville, Connecticut, Mohegan Sun Pocono in Plains Township, Pennsylvania, the MGE Niagara Resorts in Niagara Falls, Canada and INSPIRE Entertainment Resort in Incheon, South Korea.
According to Mario Kontomerkos, President & Chief Executive Officer of MGE, the property portfolio performed remarkably well during the fiscal fourth quarter despite reductions in capacity and offerings during the pandemic.
“Consolidated Adjusted EBITDA for the September quarter was
down modestly compared to last year, demonstrating the overall
resilience of our business and the strength of our product and brand.”
Apart from the closed MGE Niagara Resorts, the same-store adjusted EBITDA grew 15.9% over the prior year while margins improved over 800bps. Margin performance was driven by lower overall payroll and marketing expenses, permanently reducing the overall cost structure at MGE.
The company recognizes market weakness in volume and limited construction progress of Inspire Korea and the re-opening of the MGE Niagara Resorts and the Mohegan Sun Casino in Las Vegas. It is hoped that the future bodes well for better figures given pent-up demand.
Mohegan Gaming reported specific operating results: Net revenues of $294.0 million vs. $414.0 million in the prior year period, a 29.0% decrease; Income from operations of $50.2 million vs. $15.7 million in the prior year period, a 219.7% increase; and Adjusted EBITDA of $82.8 million vs. $89.4 million in the prior year period, a 7.4% decrease.
Of note, there was a decrease in consolidated net revenues at 29% (caused by declines at MGE Niagara Resorts). In addition, retail, F&B and entertainment revenues at Mohegan Sun and Mohegan Pocono turned downward while a stronger EBITDA performance cane from Mohegan Sun and in management, development and other segments.
On the positive side, these declines were partially offset by positive growth in gaming revenues at Mohegan Sun. Reports are available for the individual venues.