MGE lauds the ‘ability to adapt’ after strong group-wide performance

Mohegan Sun

A strong group-wide performance, encompassing land-based establishments and online gaming, has led to Mohegan Gaming and Entertainment recording year-over-year improvements in net revenue and adjusted EBITDA.

This is aligned to the strong performance at the company’s owned and managed properties, as well as the addition of Mohegan Sun Casino Las Vegas and MGE Digital, compared to the prior period.

However, it is noted that 2020 was negatively impacted by various COVID-19 related restrictions, including the closure of the MGE Niagara Resorts for the entire period and Mohegan Sun Pocono for 20 days, in addition to state-mandated public health protocols at the operator’s other properties.

Net revenue through the quarter ending December 31, 2021, scored a 74.2 per cent increase to $402m (2020: $230.8m), with income from operations up to $35.2m (2020: $10.6m), net loss dropping 56.1 per cent to $11.7m (2020: $26.6m), and adjusted EBITDA rising 140.8 per cent to close at $97.4m.

When compared to the period ending December 31, 2019, net revenue and adjusted EBITDA increased 0.7 per cent and 29.7 per cent, respectively, which, MGE says, was largely driven by improved overall volumes and reductions in labour and marketing costs.

“Our consolidated adjusted EBITDA of $97.4m continues our trend of strong performance and demonstrates MGE’s ability to drive profitability,” said Raymond Pineault, CEO of MGE.

“In addition, following the successful completion of financing in November 2021, we are very pleased to announce that MGE has recommenced construction of Inspire Korea.”

Revenue at the company’s flagship Mohegan Sun facility in Connecticut, during a time frame that was said to reflect “normal operating conditions compared to the prior year period,” scored a 51.6 per cent uptick to $251.5m (2020: $230.7m) due to strong gaming volumes and higher non-gaming revenue.

Mohegan Sun Pocono revenue rose 68.6 per cent to $64.2m (2020: $38m), with MGE Niagara Resorts climbing significantly to close the quarter at $62.8m (2020: $12.9m).

Carol Anderson, CFO of MGE, commented: “These results, including our strong adjusted EBITDA margins, continue to reflect MGE’s ability to adapt to the ongoing COVID-19 pandemic. 

“At our flagship property Mohegan Sun, Adjusted EBITDA was $78.2m, 20.1 per cent favorable to the period ended December 31, 2019, which is the closest pre-COVID-19 comparable, while net revenues and adjusted EBITDA margin were up 3.4 per cent, and 430 basis points, respectively, over the same period. Mohegan Sun Pocono, Mohegan Sun Casino Las Vegas, ilani Casino Resort and Resorts Casino Hotel all continue to perform well. 

“The MGE Niagara Resorts also generated strong results during its first full fiscal quarter of operations since the COVID-19 related closure that began in March 2020 and ended in July 2021.”