Mohegan — A healthy increase in Mohegan Sun’s nongaming revenues helped its parent company, the Mohegan Tribal Gaming Authority, post year-over-year gains in the quarter that ended March 31, financial results released Thursday show.

The authority, which also owns Mohegan Sun Pocono in Wilkes-Barre, Pa., reported that its net revenues for the first three months of the year — the second quarter of the authority's fiscal year — totaled $336.8 million, a 1.5 percent increase over the same period last year.

Net income, or profit, was $31.5 million, reflecting a 3.2 percent increase, while adjusted EBITDA, or net income before interest, income taxes, depreciation and amortization, totaled $85.2 million, which was down 3.5 percent.

“We’re pleased with our results, particularly in Connecticut,” Mitchell Etess, the authority’s chief executive officer, told investors and gaming industry analysts during a conference call.

Mohegan Sun's gaming revenues were up by less than 1 percent, but nongaming revenues generated by the casino’s hotels, 10,000-seat arena and retail shops jumped 18.7 percent. MTGA officials said the results reflected the impact of the new Earth Tower hotel, which added 400 rooms to the property’s lodging capacity in November.

“It’s performing well above our expectations,” Etess said of the hotel.

The authority, devoted to reducing debt and diversifying its interests, marked several milestones during and since the end of the quarter, including this week’s opening of the $510 million ilani Casino Resort in La Center, Wash. Through a partnership with the Cowlitz Indian Tribe, which owns ilani, the authority is deriving development and management fees related to the project.

Mario Kontomerkos, the authority’s chief financial officer, announced that the authority has increased its share of the partnership from 49 to 82 percent, while the Mohegan Tribe's share has grown from 11 to 18 percent. Salishan Co., an entity that owned 40 percent, no longer has a share.

By refinancing debt, the authority reduced its interest expense during the quarter by nearly $6 million. It also has completed arranging financing for the Mohegan Sun Expo Center, an $80 million expansion now under construction and scheduled for completion next year.

Kontomerkos said the authority expects the project to “pay for itself” within five years.

And, earlier this month, Kontomerkos said, the authority reached an agreement with its partners in a South Korean resort casino project that will pay the authority $40 million in development fees. The first installment of $10 million already has been received, Kontomerkos said.

Participants in the conference call asked about the status of the authority’s search for a new chief executive officer and its pursuit of a “satellite” casino in East Windsor that would help it fend off competition from MGM Springfield, a $950 million resort casino being built in Massachusetts.

Etess, who came out of retirement in February when Bobby Soper, the authority’s former president and chief executive officer, abruptly resigned, said a search for Soper's permanent successor is underway. Etess said the new CEO would be in place by the end of the authority’s fiscal year, Sept. 30.

Kevin Brown, the Mohegan tribal chairman who also heads the authority’s management board, said he was confident that Connecticut will enact legislation authorizing the East Windsor casino. The Mohegans and the Mashantucket Pequots, owners of Foxwoods Resort Casino, are jointly pursuing the project.

“We’ll push it through,” Brown said of the legislation.

b.hallenbeck@theday.com