Mohegan Gaming and Entertainment has reported a solid performance as the Connecticut headquartered integrated resort developer and operator publishes operating results for its first fiscal quarter ended December 31, 2019.
Amid expansions targeted across South Korea and Greece via Inspire Entertainment Resort in Incheon and Inspire Athens, consolidated net revenues for the firm increased 24.9 per cent driven primarily by the recent acquisition of MGE Niagara Resorts.
On a like for like basis, revenue increases were driven by Mohegan Sun Pocono, as well as a continued strong performance from non-gaming revenue growth, including entertainment and hotel revenues at Mohegan Sun, partially offset by lower gaming volumes at the property.
Adjusted EBITDA rose 4.5 per cent during the quarter, reflecting contributions previously noted in addition to stronger EBITDA from the management and development segments.
However, adjusted for the impact of MGE Niagara Resorts, overall adjusted EBITDA is said to have remained flat with the prior year first quarter, with margins above prior year levels, reflecting the positive impact revenue enhancements and expense controls have had on the underlying core business.
“I am pleased to report that fiscal 2020 is off to a solid start with consolidated first-quarter revenues and Adjusted EBITDA above prior year results, driven by the strong year over year growth in revenue and Adjusted EBITDA at Mohegan Sun Pocono and the inclusion of MGE Niagara Resorts,” explained Mario Kontomerkos, president and chief executive officer of MGE.
“Importantly, on a like for like basis, excluding the positive contribution of MGE Niagara Resorts, overall adjusted EBITDA was roughly flat with the prior year while overall adjusted EBITDA margins improved, a remarkable achievement considering the competitive pressures in the northeast region over the last 18 months.
“Performance at our flagship property Mohegan Sun was strong due to better expense management and continued strong performance in non-gaming segments, highlighted by our recent hosting of the Miss America competition.
“Looking beyond the United States, construction is progressing on-time and on-budget in Inspire Korea, while the integration of the MGE Niagara Resorts progresses well despite the impact of lower table hold rates and adverse weather in the quarter. Finally, our expansion into Las Vegas took a large step forward this week, as MGE and our partner Virgin Hotels began the renovation of the future Virgin Hotels Las Vegas set to open in late 2020.”