MGE Reveals Financial Performance

Mohegan Gaming and Entertainment (MGE) registers a drop in profits; however, digital revenue shows a promising upward trend. The financial performance of MGE during the recent quarter, with its various operational centers, presents a multifaceted picture.

Varied Revenue Trends Across Different Locations

MGE saw a mixed bag of revenue trends across their locations. Their Connecticut unit experienced a 1.1% decline with revenue standing at $285.2m, primarily due to a decrease in the gaming sector. However, better performance in the food and beverage segments, along with a boost in hotel revenues, helped cushion the fall.

Similarly, Mohegan Pennsylvania’s revenue dipped by 2.3% to $65.2m, attributed again to lower gaming volumes. Once again, compensatory revenue was generated from the food, beverage, and hotel sectors.

In a bright spot, the Niagara Resorts reported a modest revenue increase of 1.8%, reaching $81.2m. The rise was driven by the successful implementation of non-gaming amenities, including the new OLG Stage entertainment venue. Despite this, gaming revenue fell by $5.2m due to lower slot volumes.

Digital Revenue: The Silver Lining

In contrast to the land-based market’s performance, digital revenue made a significant leap of 56.6% to sit at $16.7m. This increase was facilitated by the successful Ontario launch and an uptick in growth in Connecticut. Mohegan Digital president Rich Roberts highlighted that igaming is envisioned as an extension of the brick-and-mortar properties, providing support rather than competition.

MGE CEO Mario Kontomerkos said that the company was pleased with the results, noting that “we are effectively executing on our diversified business model which exists across multiple geographies and channels as well as payment methods such as bank wire transfer and bitcoin payments” He further added that their digital operations had strengthened significantly in recent months, creating new opportunities for growth.

The Impact on Net Profit

Operating costs for the quarter rose by 1.8% to $333.0m, accompanied by $29.5m in finance-related costs. This resulted in a pre-tax profit of $52.8m, marking a 16.3% fall from the previous year. After accounting for $2.2m in tax and $64,000 deducted from profit attributable to non-controlling assets, the net profit totaled $50.6m, a decrease of 14.8%. Although there was a slight 9.5% slip in Adjusted EBITDA, MGE noted it as the third-highest quarterly total in its 26-year history.