Mohegan authority posts strong quarter
Mohegan — Mohegan Sun executives reported Tuesday that business was up at the Uncasville casino during the three months that ended Sept. 30, the fourth quarter of the parent company’s 2016 fiscal year.
Stabilization, in fact, has given way to growth, they said.
“We are pleased to report another quarter of strong operating results and year-over-year growth,” Bobby Soper, president and chief executive officer of the Mohegan Tribal Gaming Authority, said in a statement released prior to a conference call with gaming analysts.
He said the authority’s strong performance was led by Mohegan Sun, “which generated its highest operating cash flow since 2008.”
“With a successful comprehensive refinancing behind us, the opening of our new 400-room Earth Hotel and the grand opening of ilani Resort approximately two quarters away, we look forward to even stronger financial performance going forward," Soper said.
Overall, the authority, which operates Mohegan Sun and Mohegan Sun Pocono in Wilkes-Barre, Pa., earned net revenues of $346.4 million in the quarter, a 2.1 percent increase over the same quarter the previous year.
Net income, or profit, of $44.2 million was up 21 percent.
MTGA income also came from fees the authority earned in helping develop the Cowlitz Indian Tribe’s ilani Casino Resort in La Center, Wash., scheduled to open in the spring, and in managing the Resorts Casino Hotel in Atlantic City and the Tunica-Biloxi Tribe of Louisiana’s Paragon Casino Resort in Marksville, La.
Customer traffic and lower payroll costs at Mohegan Sun fueled increases in table-game and slot-machine revenues, outstripping a decline in nongaming revenues that primarily resulted from fewer Mohegan Sun Arena shows.
Soper said Mohegan Sun’s fourth-quarter table-games “win” was the highest of any fourth quarter since the 2008 fiscal year.
During the quarter, the authority finalized an agreement allowing it to proceed with development of an integrated resort in Incheon, South Korea, and also completed a major refinancing of its longterm debt. Both Moody’s Investors Service and Standard & Poor’s upgraded the authority’s credit rating.
Commenting on the potential for further Mohegan Sun expansion, Mario Kontomerkos, the authority’s chief financial officer, said the casino needs more convention space.
“We’re seeing turnaways on the meetings and convention side,” he said. “And we have a significant amount of developable land.”
The authority distributed $18.5 million to the tribe during the quarter.
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