Mohegan recorded revenue of $417.0m (£341.2m/€403.2) in its third quarter 2021-22 results, the first quarter since the beginning of the Covid-19 pandemic where it had unrestricted operations.
The revenue figure for the period – ended June 30 – was up by 27.1% when compared to the same quarter a year earlier.
During the quarter, Mohegan broke its quarterly record for adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), which came to $120.0m. Raymond Pineault, CEO of Mohegan, says this was because Q3 2022 was the first quarter free of Covid-19 restrictions for its Niagara location in Canada since the pandemic began.
“Our consolidated adjusted EBITDA of $120.0 million was the highest quarterly total in our 25-year history,” said Pineault.
“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.”
The Mohegan Sun flagship property in Connecticut generated $236.4m in revenue, up by 7.4% from Q3 2021. Mohegan attributed this to reintroducing non-gaming amenities that were not available during the pandemic.
Mohegan Sun Pocono saw revenues of $66.7m, 6.1% higher year-on-year, which was also attributed to an increase in non-gaming revenue as well as slot volumes.
MGE Niagara Resorts had the most drastic revenue change. In Q3 it generated $79.6m, which was a rise of 453.7% year-on-year. This was because Q3 was the first quarter that MGE Niagara Falls operated restriction-free.
Combined revenue from Mohegan’s online casino and sports wagering segment, along with the Mohegan Sun Las Vegas, totaled at $18.7m. This was a rise of 124.5%.
In terms of the overall revenue, gaming made the highest contribution, at $293.9m. Retail, entertainment and other revenue contributed $57.2m, while food and beverage revenue came to $35.6m. Revenue from hotels was $30.2m.
Operating costs for the quarter totaled at $326.9m, up by 25.1% yearly. Gaming incurred the highest cost, at $139.7m. Advertising, general and administrative expenses totaled at $79.3m, while depreciation and amortisation costs amounted to $26.0m. The remaining cost was made up of hotel, food and beverage and other expenses.
The operating income totaled at $90.1m, up by 40.7% yearly.
Other expenses – including interest expense and loss on modification of debt – amounted to $53.9m. Various gains offset this slightly, including gain on fair value adjustment at $26.7m and interest income at $64,000.
Overall, the pre-tax income was $63.0m. After tax at $3.5m, the net income for the period was $59.5m, 164.0% higher than in Q3 2021.
