Mohegan Tribal Gaming Authority has achieved its highest Adjusted EBITDA in the company’s history.
Publishing its fourth fiscal quarter ended September 30, 2022, Chief Executive Officer of Mohegan, Raymond Pineault, confirmed the firm’s record citing the first full fiscal year of operations of Mohegan Casino Las Vegas, the launch of Mohegan Digital and the reopening and “ramp-up” of Niagara Resorts, all contributing to its results.
Despite its full year Adjusted EBITDA performance, Mohegan’s fourth quarter performance witnessed a decline to $99.8m, down 9.5 per cent from the same period last year ($10.5m).
However, Carol Anderson, Chief Financial Officer of Mohegan, cited lower margin non-gaming amenities, along with increased labour and utilities costs, as an attributor to the decline.
She noted: “Our Adjusted EBITDA margin of 24.2 per cent for the quarter was 260 basis points higher than our pre-COVID-19 fourth quarter of fiscal 2019.
“Compared with the prior-year period, our Adjusted EBITDA margin declined due to the continued reintroduction of certain lower margin non-gaming amenities, as well as increased labour and utilities costs.”
Along with the Adjusted EBITDA performance, Mohegan revealed in its operating results that the company’s net revenues also experienced a 5.6 per cent increase from 2021, rising to $412.99m from $391.2m.
Mohegan noted that the growth in its net revenues, when compared with the same period the year prior, was driven by a full period of operations and a return to “relatively normal” operating conditions at the Niagara Resorts, combined with the continued growth in its online casino and sports wagering operations in Connecticut.
Delving into specific retail operations, Mohegan Sun witnessed a decrease in net revenue by 1.9 per cent to $4.6m to the prior year, pinpointing a decline in both slot and table game revenues.
Mohegan noted that the results were partially offset by higher non-gaming revenues, with Adjusted EBITDA of $65.2m also down 14.9 per cent from 2021 due to “significantly lower” labour, marketing and other operator expenses.
Heading over to Pennsylvania, the company’s property there experienced net revenue of $64.7m, a decrease of five per cent ($3.4m) compared to the year prior (2021: $68.087m), highlighting lower gaming revenues as a result of lower gaming volumes and table game hold percentage.
Adjusted EBITDA also dropped 15.3 per cent ($3.4m) when compared to the year prior reverting back to the drop in net revenue as a primary cause.
As aforementioned, Mohegan’s Niagara Resorts performance “ramped-up” the overall performance for the firm, with net revenues up 45.7 per cent to $84.5m and Adjusted EBITDA of $17.9m, $1.1m favourable compared with the prior-year period.
The Niagara Resorts were temporarily closed effective March 18, 2020, following the pandemic, and reopened on July 23, 2021 under various COVID-19 related restrictions.
As of September 30, 2022 and September 30, 2021, Mohegan held cash and cash equivalents of $164.7m and $149.8m, respectively. Inclusive of letters of credit, which reduce borrowing availability. Mohegan had $243m of borrowing capacity under its senior secured credit facility and line of credit as of September 30, 2022.
In addition, inclusive of letters of credit, which reduce borrowing availability, the Niagara Resorts had $120.1m of borrowing capacity under its revolving credit facility and swingline facility as of during the fiscal period.