Connecticut-based integrated resorts developer and operator Mohegan Gaming & Entertainment announced on Wednesday operating results for its first fiscal quarter 2022, ended December 31, 2021. For the period, the tribal company posted net revenues up 74.2% to $402 million compared to the three months ended December 31, 2020.
Moreover, the business posted income from operations of $35.2 million, a 231.7% increase year-over-year. A net loss attributable to MGE of $11.7 million was delivered, less than a $26.6 million loss in 2020; while Adjusted EBITDA increased 140.8% to $97.4 million.
“Our consolidated Adjusted EBITDA of $97.4 million continues our trend of strong performance and demonstrates MGE’s ability to drive profitability,” said Raymond Pineault, CEO of the company. “In addition, following the successful completion of financing in November 2021, we are very pleased to announce that MGE has recommenced construction of Inspire Korea.”
To be located on Yeongjong Island in Incheon, South Korea, INSPIRE Entertainment Resort’s Phase 1 calls for the development of three 5-star hotel towers, a 15,000-seat multifunctional professional performance arena, a foreigners-only casino, the largest convention facility in the Seoul metropolitan area, a year-round indoor water dome experience and a large outdoor thematic space known as the “Family Park.”
In November, the Connecticut-based developer and operator announced the successful closing of financing to develop the resort which, at the time, was announced as expected to open in 2023, with an aggregate funding of $1.5 billion to be used for Phase 1. Structural steelwork and underground utility construction are in progress, officials said in a call with investors.
“These results, including our strong Adjusted EBITDA margins, continue to reflect MGE’s ability to adapt to the ongoing COVID-19 pandemic,” said Carol Anderson, Chief Financial Officer of the Company.
At the company’s flagship property Mohegan Sun in Uncasville, Connecticut, Adjusted EBITDA was $78.2 million, 20.1% up from the period ended December 31, 2019, the closest pre-Covid-19 comparable. Net revenues and Adjusted EBITDA margin were up 3.4% and 420 basis points, respectively, over the same period.
“Mohegan Sun Pocono, Mohegan Sun Casino Las Vegas, ilani Casino Resort and Resorts Casino Hotel all continue to perform well,” added Anderson. “The MGE Niagara Resorts also generated strong results during its first full fiscal quarter of operations since the COVID-19 related closure that began in March 2020 and ended in July 2021.”
According to a company, the year-over-year improvements reported in net revenues and Adjusted EBITDA during the period were due to strong performance at the company’s owned and managed properties, plus the addition of Mohegan Sun Casino Las Vegas, which opened in 2021, and MGE Digital, launched in June.
Moreover, the three months ended December 31, 2021, are compared against a prior period which was negatively impacted by various Covid-19 related restrictions, including the closure of the MGE Niagara Resorts for the entire period, the closure of Mohegan Sun Pocono for 20 days, and state-mandated public health protocols at the company’s other properties.
Mohegan Sun, flagship Connecticut property
When compared to the period ended December 31, 2019, consolidated net revenues increased a modest 0.7%, and Adjusted EBITDA increased 29.7%, largely driven by “improved overall volumes and reductions in labor and marketing costs” as part of a “reimagining” of MGE’s business.
Along with its financial report, MGE announced on Wednesday that the very next day the company would be opening its new Mohegan Sun FanDuel Sportsbook at its flagship Connecticut property, just a mere three days before the Super Bowl.
The new venue occupies the casino’s former Race Book amenity, and follows the launch of sports gaming in September at a temporary location in its Bow & Arrow Sports Bar. The Thursday debut of the permanent sportsbook has been described as a “soft launch” by the company, and will be followed by an official grand opening, slated for March 5.
The new Mohegan Sun FanDuel Sportsbook is home to a 140-foot video wall, over 30 additional hi-res flat screens, a mezzanine level, and a full bar. “We’re beyond excited about this new venue which completely transforms Mohegan Sun’s old Race Book space into one of the largest and most dynamic FanDuel Sportsbook’s in the United States,” said Jeff Hamilton, president and general manager of Mohegan Sun.
