Mohegan lauds digital strategy as retail revenue uplift drives Q2

Mohegan Sun

Mohegan Tribal Gaming Authority has heaped praise on its digital path to profitability, as the group’s reopened retail gaming network leads the group to a “strong performance” through the year’s second quarter.

For the three months ending June 30, 2021, the casino and entertainment operator recorded revenue of $417m, which represents a 27.1 per cent increase from the $328.18m recorded one year earlier. 

This, said Mohegan, is due to the prior year period being negatively affected by various COVID-19 related restrictions at domestic properties as we as the closure of the MGE Niagara Resorts for the entire period, self-imposed capacity limitations at Mohegan Sun and state-mandated health protocols at most other venues.

Furthermore, revenue also benefited from upticks across all core reporting segment, with gaming; food and beverage; hotel; and retail, entertainment and other reaching $293.97m (2021: $241.29m), $39.62m (2021: $20.82m), $30.25m (2021: $22.18m), and $57.22m (2021: $43.88m) respectively.

Net income through the period increased 134 per cent year-on-year to $59.36m (2021: $25.36m), with adjusted EBITDA up 18 per cent to $120m (2021: $101.68m).

“Our consolidated adjusted EBITDA of $120m was the highest quarterly total in our 25-year history,” said Raymond Pineault, Chief Executive Officer of Mohegan. 

“This was the first full fiscal quarter of operations without COVID-19 restrictions at MGE Niagara Resorts since the pandemic first closed the property in March of 2020, and Mohegan Digital continues to execute a strategy that is focused on profitability. These results reflect the success of Mohegan’s diversification strategies.” 

Revenue at the company’s flagship Mohegan Sun increased 6.1 per cent to $236.46m (2021: $220m), driven by the reintroduction of non-gaming amenities that were not offered in the prior-year period. However, adjusted EBITDA dropped 8.1 per cent to $75.71m (2021: $82.42m). 

Mohegan Sun Pocono also witnessed increased non-gaming revenue as well as a rise slot volume to generate $66.78m, up 6.1 per cent from 2021’s $62.93m, but heightened labour costs saw AEBITDA drop 2.6 per cent to $14.95m (2021: $15.35m).

Revenue and EBITDA at MGE Niagara casinos closed at $79.62m and $19.57m due to the enforced closure being in place for the entire prior-year period.

Carol Anderson, Chief Financial Officer of Mohegan, added “The consolidated Adjusted EBITDA margin of 28.8 per cent was 529 basis points higher than the pre-COVID comparable fiscal 2019 quarter. 

“Compared to the fiscal 2021 quarter, the adjusted EBITDA margin has declined due to the continued reintroduction of some lower margin non-gaming amenities since the prior-year period.”