MGE third-quarter revenue flat, income down

Mohegan Sun

Third-quarter revenues edged up slightly for Mohegan Gaming & Entertainment, rising 0.8 percent year-on-year to US$347.6 million, according to a report from the company. 

MGE is a developer and operator of integrated resorts, including Mohegan Sun in Uncasville, Connecticut, Inspire in Incheon, South Korea, and Fallsview Casino Resort in Niagara Falls Ontario.

While total net revenue rose slightly in the quarter ended June 30, the same could not be said for its Mohegan Sun property, which posted a 7.2 percent decline in revenue, driven by lower overall gaming revenue and unfavorable table hold. This was offset slightly by stronger non-gaming results. 

Revenue also declined at Mohegan Sun Pocono reflecting lower table and slot revenues, offset marginally by better table hold in the period.

The company was able to realize revenues from 20 days of operations of its newly acquired Niagara Bundle along with higher management fees from ilani Casino Resort.

“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 11th, including the impressive Fallsview 

Casino Resort – representing MGE’s latest international expansion and further earnings diversification,” said Mario Kontomerkos, president & chief executive officer.

Income from operations fell 13.6 percent to $55.2 million, while adjusted EBITDA fell 7.5 percent to $81.6 million. 

Regarding the company’s resort in Korea,  Kontomerkos said that construction activity is continuing, with an opening set for early 2022, which he says will  set the stage for “further earnings diversification.”