Operator News
US – Mohegan down $12.2m in first quarter with tough year-on-year comparisons and weather to blame
By Phil - 13 February 2023
Mohegan Tribal Gaming Authority saw its revenues decrease by $12.2m for its first fiscal quarter ended December 31, 2022 due to declines in both slot and table games revenues, reflecting lower overall volumes as the prior-year benefited from Mohegan Sun’s 25th anniversary celebration.
Results were also impacted by unfavorable slot and table hold and weather in the current-year period. Adjusted EBITDA of $67.8m was 13.3 per cent unfavorable compared with the prior-year period, due to lower volumes and increased labor and other operating expenses in the current-year period. operating results.
Mohegan Las Vegas generated net revenues that decreased $12.2m compared with the prior-year period due to declines in both slot and table games revenues, reflecting lower overall volumes as the prior-year benefited from Mohegan Sun’s 25th anniversary celebration. Results were also impacted by unfavorable slot and table hold and weather in the current-year period.
At Mohegan Pennsylvania, net revenues decreased $4.4m compared with the prior-year period primarily due to lower gaming revenues as a result of lower gaming volumes that were impacted by poor weather and table games hold percentage.
Niagara Resorts saw net revenues increase by $11.2m compared with the prior-year period due to higher gaming volumes and a substantial increase in non-gaming revenues. These results reflect increased volumes related to the opening of the 5,000 seat OLG Stage entertainment venue and the properties operating without various COVID-19 related restrictions in the current year.
“Our consolidated Adjusted EBITDA of $101.1m continues our trend of strong performance,” said Raymond Pineault, Chief Executive Officer of Mohegan. “Our diversification strategy and continued focus on profitability have enabled Mohegan to offset some of the inflationary and labor pressures and achieve these strong results.”
Carol Anderson, Chief Financial Officer of Mohegan, also noted: “Our Adjusted EBITDA margin of 24.9% was 605 basis points favorable compared with our pre-COVID-19 first quarter of fiscal 2020 and 62 basis points favorable compared with the prior-year period.”
The growth in net revenues compared with the prior-year period was primarily 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 our online casino gaming and sports wagering operations in Connecticut.
