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    Sunday, May 05, 2024

    Mohegan Gaming & Entertainment reports robust quarterly earnings

    Mohegan — Mohegan Gaming & Entertainment executives touted the company’s third-quarter results Thursday, telling investors and industry analysts in a conference call that net revenues during the three months that ended June 30 totaled $350.2 million, an 8.3 percent increase over the same period a year earlier.

    Gaming revenues of $294 million were up 6.2 percent, while nongaming revenues of $82.6 million increased 14.5 percent. Net income, or profit, was $43.8 million — a 68 percent increase.

    “We’re starting to see our long-term plan being reflected in our earnings,” Mitchell Etess, MGE’s president and chief executive officer, said in a phone interview after the call. “We’re seeing increased fees on the corporate side and the impact of the new hotel.”

    “It’s noticeable that what you’re seeing in the numbers are the things we’ve been working on,” he said.

    MGE’s flagship, Mohegan Sun in Uncasville, accounted for much of the company’s robust overall performance, overshadowing a decline in revenues at Mohegan Sun Pocono, its Wilkes-Barre, Pa., casino. The company also manages Resorts Casino Hotel in Atlantic City, the new ilani Casino Resort in La Center, Wash., which it also helped develop, and the Paragon Casino Resort in Marksville, La. Ilani, owned by the Cowlitz Indian Tribe, opened in April.

    MGE also is partnering on the development of a $1.6 billion resort in Incheon, South Korea, a project still in the design stage and scheduled to be completed in 2020.

    At Mohegan Sun, quarterly gaming revenues were up 10.4 percent and nongaming revenues were up 13.8 percent.

    During the call, Mario Kontomerkos, MGE’s chief financial officer, said the casino’s Earth Tower hotel helped drive business, as did a high-quality concert lineup and Barrett-Jackson’s second annual Northeast Auction of collector cars, which drew more than 72,000 people to Mohegan Sun Arena over four days in June.

    Etess said it would be hard to overestimate the significance of the new hotel, which opened last November, adding 400 rooms to the 1,200 rooms the casino already had. During the quarter, Mohegan Sun’s overall room occupancy rate dipped only slightly, year over year, from nearly 99 percent to 96.5 percent, while hotel revenue grew 23 percent to $15.6 million.

    MGE hopes to get a similar boost from the next Mohegan Sun expansion, an $80 million convention center under construction next to the Earth Tower. It’s expected to be completed by next June, in time to host Barrett-Jackson’s third annual Northeast Auction.

    Etess offered no new information regarding the timetable for the third Connecticut casino in East Windsor, a project the Mohegan and Mashantucket Pequot tribes jointly are pursuing. The state Senate is expected next week to approve state-tribal agreements facilitating the project. The House already has done so.

    The U.S. Bureau of Indian Affairs also must sign the agreements before construction can begin.

    b.hallenbeck@theday.com

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