Mohegan Gaming and Entertainment revenue grows 74.1% in Q1

Revenue came to $401.9m for the quarter ended 31 December 2021, a substantial increase from $230.7m recorded in in the first quarter of 2020-2021.

Gaming revenue made up $285.7m of the total, up by 64.9% from the prior year.

Retail, entertainment and sources brought in $54.7m, up by 82.3%, while food and beverage revenue almost tripled to $31.6m. Hotel revenue totalled $29.8m, up 80.7%.

The main driver was MGE’s flagship property in Connecticut, Mohegan Sun. Its contribution was up 51.6% to $64.2m, while Pennsylvania’s Mohegan Sun Pocono brought in $64.2m, a 68.6% year-on-year improvement.

Casino Niagra in Ontario also saw revenue jump significantly, with revenue of $62.8m representing a 383.4% hike from the prior year. This was complemented by $13.9m in management and development revenue, largely down to increased management and development fees for Washington’s Ilani Casino Resort and higher management fees from Resorts Casino Hotel. This segment will also include the Inspire Korea resort, once it has been built.

Finally, a further $10.2m was generated from Mohegan Sun Las Vegas, which opened in March 2021, and MGE’s share of legal betting and igaming in Connecticut, that have been live since October 2021.

Operating costs amounted to $366.7m, up 66.3%. This figure was primarily comprised of gaming-related costs, at $147.7m, while advertising, general and administrative costs were up 55.5% to $75.7m.

Food and beverage costs increased significantly, by 129.2% to $26.3m, while depreciation and amortization costs declined by 2.1%.

The remaining $91.4m in expenses came from an accumulation of hotel, corporate, retail and other costs.

After costs, the operating income came out at $35.1m, over three times what it was in Q1 2020-2021.

Once depreciation and amortisation was factored back in, earnings before interest, tax, deprecation and amortisation (EBITDA) for the quarter was up 140.8% at $97.4m, which chief executive Ray Pineault credited to the operator’s “trend of strong performance and demonstrates MGE’s ability to drive profitability”.

After finance-related outgoings the business posted a pre-tax loss of $10.3m, which widened to $11.7m after income taxes and a loss from a non-controlling interest were factored in. After foreign currency adjustments, which resulted in a loss compared to a $21.0m gain in the prior year, MGE’s net loss for the quarter widened to $16.7m.