Mohegan Gaming & Entertainment has posted operating results for its third fiscal quarter ended June 30, 2019, showing net revenue up against a backdrop of lower operational income and reduced adjusted EBITDA.
The headline figures revealed that net revenues saw a minor increase of 0.8% to $347.6m from. $344.9m in the prior year period, while income from operations fell by 13.6% to $55.2m versus $63.9m year-on-year. Adjusted EBITDA came in at $81.6m, down by 7.5% on the corresponding period in 2018.
According to Mohegan, consolidated net revenues were generally flat and adjusted EBITDA declined during the quarter, largely driven by temporary unfavorable hold in the quarter at Mohegan Sun.
These declines were partially offset by improved non-gaming revenue growth, including entertainment and hotel revenues at Mohegan Sun, as well as stronger corporate adjusted EBITDA, driven by the inclusion of Niagara in the period, tighter expense management and improved financial performance at ilani Casino Resort.
Mario Kontomerkos, President & Chief Executive Officer, summarized: “The June quarter was an important one in the evolution of MGE, as we closed on the acquisition of the Niagara casino bundle on June 11, including the impressive Fallsview Casino Resort – representing MGE’s latest international expansion and further earnings diversification.”
He added: “Domestically, volume trends across our portfolio remain in-line to better than expected as overall gaming volumes at our flagship property, Mohegan Sun, remain robust despite the increased competitive pressure in the Northeast. Adjusting for unusually low table hold, overall MGE EBITDA would have been largely in line with our expectations, slightly up from last year’s comparable period, and well ahead of recent fiscal year 1Q19 and 2Q19 performance.
“Outside of Connecticut, EBITDA from Pocono grew, while Corporate EBITDA turned positive given continued growth from our managed portfolio, including the first contribution from the Niagara assets and continued strong financial performance from ilani.”
