Mohegan Sun revenue, profit down in quarter that ended in September
Mohegan ― Mohegan Sun’s net revenues and profit in the quarter that ended September 30 were down over the same period the previous year by 1.9% and 15.9%, respectively, the casino’s parent company, Mohegan, announced Tuesday.
The casino reported $236.8 million in net revenues during July, August and September ― the fourth quarter of Mohegan's fiscal year ― and $49.3 million in net income, or profit.
Mohegan Sun’s profit during the quarter was offset by losses in some other segments of the company’s business. Overall, Mohegan reported quarterly net revenues of $413 million and profit of $29.8 million, numbers which were up by 5.6% and 24.1%, respectively, over the previous year.
In addition to Mohegan Sun, its flagship property, Mohegan owns and/or manages casinos in Wilkes-Barre, Pa.; Niagara Falls, Ontario, Canada; Ridgefield, Wash.; Las Vegas; and Atlantic City, and is developing a casino resort in Incheon, South Korea.
For the entire fiscal year, the company’s adjusted EBITDA ― earnings before interest, income taxes, depreciation and amortization, a metric favored by some in the hospitality and gaming industries ― reached a new level.
“Our adjusted EBITDA for fiscal 2022 of $403.9 million was the highest in our 26-year history,” Ray Pineault, Mohegan’s president and chief executive officer, said during a conference call with investors and industry analysts. “The first full fiscal year of operations of Mohegan Casino Las Vegas, the launch of Mohegan Digital, and the reopening and ramp-up of Niagara Resorts all contributed to these results.”
Mohegan cited a return to full operations in the wake of the COVID-19 pandemic, particularly at its two casinos in Canada ― Fallsview Casino and Casino Niagara ― which reopened with capacity restrictions in late July 2021 after being closed for more than 16 months. Growth in online casino gaming and sports betting in Connecticut also contributed to the increase in overall net revenues, the company said.
Mohegan Sun’s year-over-year decline in net revenue was the result of a 10.3 % decrease in gaming revenue from slot machines and table games. The gaming losses were partially offset by gains in nongaming revenue from food-and-beverage establishments and Mohegan Sun Arena entertainment.
Pineault said Mohegan Digital Connecticut, which introduced online gaming and sports betting in the state a year ago, promises to be “a significant contributor” to Mohegan’s bottom line. The company reported that Mohegan Digital Connecticut’s monthly ARPU, or average revenue per user, was about $450 in the first year. More than 80% of the first-year “digital activations” represented people new to the Mohegan database.
The company launched digital gaming in Ontario during the quarter.
Pineault said Mohegan has proposed investing another $108 million in its $1.6 billion Inspire resort project in South Korea, which he said is still on track to partially open in the latter part of 2023. The cash infusion would cover an expansion in the scope of the project, increased costs and contingency.
Construction is progressing on the project’s three hotel towers, casino, convention center and 15,000-seat arena, according to a Mohegan summary.