M
ohegan Gaming & Entertainment (MGE) announced Tuesday its operating results for its third fiscal quarter ended June 30, 2021.
According to an official press release published by the company, net revenues amounted to $328.2 million, up from $107.2 million in the prior year period, a 206.1% increase. Income from operations reached to $64.0 million versus loss from operations of $20.5 million in the prior-year period. The company’s Adjusted EBITDA was $101.7 million, a 1,111.2% increase from $8.4 million in the prior year period.
When compared to the third quarter of 2019, consolidated net revenues declined 5.6%, while Adjusted EBITDA increased 24.6%. While the Adjusted EBITDA improvement was largely driven by reductions in operating costs and expenses, including lower payroll costs and marketing expenses, net revenues continued to be impacted by the COVID-related closure of MGE Niagara Resorts and state-mandated social distancing protocols at the company’s other properties.
Excluding the impact of the closure of MGE Niagara Resorts for the full quarter and adjusting primarily for table hold, the Adjusted EBITDA margin would have been 33.9% for the quarter, up 707 basis points from 26.8% in the third quarter of 2019.
Mohegan Sun generated quarterly sequential improvement due to increased visitation, positive gaming trends and removal of the final remaining COVID-related restrictions on May 19th. The property will continue to reintroduce non-gaming amenities this summer, including the Arena with performances from premiere acts such as Jason Mraz and Toby Keith, and convention groups have planned to return.
“Another quarter of strong results demonstrates that MGE remains well positioned as we continue to emerge from the pandemic,” said Raymond Pineault, Chief Executive Officer. “In addition, we recently announced Mohegan Digital, which will provide leading sports betting and digital gaming solutions to our loyal customers and attract new customers on a broader scale. This new business line will diversify our future revenue streams and contribute to the financial stability of MGE. Finally, MGE Niagara Resorts reopened to the public on July 23rd after just over 16 months of closure due to COVID restrictions in Ontario.”
Carol Anderson, Chief Financial Officer, also noted: “These results are indicative of the continued recovery as most remaining COVID-related restrictions were lifted at our United States properties during the quarter. At our flagship property Mohegan Sun, while revenues were below third quarter 2019 levels, which is the closest comparable due to property closures in the third quarter of 2020, Adjusted EBITDA was $82.4 million, 22.5% favorable to the third quarter of 2019, and EBITDA margin was up 1,065 basis points over the same period. Outside of Connecticut, ilani in Washington State continues to perform ahead of expectations, and Mohegan Sun Pocono, Mohegan Sun Las Vegas and Resorts are generating positive results.”
Despite the decline in Adjusted EBITDA, cash flows from the MGE Niagara Resorts during the quarter were approximately breakeven, as Fallsview rent payments have been deferred and the properties continue to receive both the Fixed Service Provider Fee as well as reimbursement for Permitted Capital Expenditures while closed.
MGE Niagara Resorts reopened with 2 days of invited guests only events on July 21st and 22nd, and to the public on July 23rd. On July 14, 2021 it entered into an Amended and Restated Credit Agreement that permits access to the revolving credit facility in relation to capacity restrictions set by the Province of Ontario and modifies other financial and operating covenants to facilitate the re-opening process.
Net revenues increased during the quarter due to continued growth in management fees from ilani and fees earned from the management of Paragon Casino Resort. Adjusted EBITDA growth was driven by the fees noted above, but partially offset by a higher allocation of Corporate labor costs.
The 10.9% decline in Adjusted EBITDA was principally due to higher operating costs in the current period related to advertising, software licenses and service contracts.
Original article: https://www.yogonet.com/international//noticias/2021/08/10/58768-mohegan-gaming-sees-206por_ciento-growth-in-net-revenues
