Mohegan has voiced encouragement at the future growth potential of its digital business after being uplifted by the “strong results” delivered by the segment during the year’s first quarter.
Driven by growth across Connecticut and the addition of online gaming in Ontario, revenue surged to $22.71m (2022: $5.91m) while adjusted EBITDA increased $16.6m to close the quarter at $18.1m.
Regarding the online performance, the company noted: “Mohegan Digital Connecticut also benefited from a one-time cumulative update to the revenue share allocation from our digital gaming partner, which impacted net revenues and adjusted EBITDA.”
Group-wide revenue through Q1 increased 13.2 per cent to $405.84m (2022: $358.47m), driven by a full period of operations as well as “relatively normal operating conditions” at Niagara Resorts.
This, said Mohegan, was complemented by a maintained uptick in performance across online casino gaming and sports wagering operations in Connecticut, as previously alluded to.
Elsewhere, income from operations increased 11.1 per cent to $63.81m (2022: $57.45m), however, net loss attributable to the company closed at $9.63m (2022: -$2.78m). Adjusted EBITDA rose 17.8 per cent to $102.14m (2022: $86.69m).
“Our consolidated adjusted EBITDA of $102.1m reflects the positive results from our properties and digital operations,” said Raymond Pineault, Chief Executive Officer of Mohegan.
“We are encouraged by the strong results from our digital segment and look forward to continued growth in that line of business.”
On a property by property basis, the group’s flagship Connecticut-based Mohegan Sun property saw revenue increase 4.8 per cent to $225.92m (2022: $215.48m).
This, it was reported, is primarily due to increases in slot and sportsbook revenues, along with strong non-gaming growth driven by food, beverage and hotel revenues. AEBITDA was 4.3 per cent ahead year-on-year at $65.62m (2022: $62.92m).
Revenue at Mohegan Pennsylvania crept forward 1.7 per cent to $63.24m (2022: $62.16m), which the company put down to increased food, beverage and hotel revenue.
Adjusted EBITDA remained flat at $13.21m due to increased labour costs offsetting the aforementioned increase.
Further north, Niagara Casinos recorded a 35.4 per cent revenue jump to $70.75m (2022: $52.26m), with higher gaming volumes and heightened non-gaming activity pointed to.
In addition, the past year was impacted by a government mandated closure from January 5, 2022, through January 30, 2022, due to a rise in COVID-19 cases in Ontario.
However, adjusted EBITDA slid 32.8 per cent to close at $4.78m (2022: $7.12m), which is primarily aligned to an approximately $3.7m non-cash adjustment related to the Casino Operating and Services Agreement contract asset, which negatively impacted gaming revenues, as well as the continued reintroduction of certain lower margin non-gaming amenities.
Carol Anderson, Chief Financial Officer of Mohegan, added: “Our adjusted EBITDA margin of 25.2 per cent was 337 basis points favourable compared with our pre-COVID-19 second quarter of fiscal 2019 and 99 basis points favourable compared with the prior-year period.”
