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    Thursday, May 16, 2024

    Revenues, profits decline for Mohegans

    Mohegan — Despite reporting overall declines in revenue and profit in the quarter that ended Sept. 30, Mohegan Tribal Gaming Authority executives said Wednesday that they were pleased with the results given the economic climate.

    In a conference call with investors and gaming industry analysts, they also touted recent refinancing initiatives and last week’s opening of a new hotel at Mohegan Sun at Pocono Downs near Wilkes-Barre, Pa.

    The authority operates Mohegan Sun in Uncasville as well as the Pennsylvania property.

    Consolidated results for July, August and September — the fourth quarter of the authority’s fiscal year — show adjusted EBITDA, or earnings before interest, income taxes, depreciation and amortization, totaled $77.2 million, down 4.7 percent over the same quarter the previous year.

    Net income, or profit, was $4.9 million, a 67.1 percent decrease from the fourth quarter of fiscal 2012.

    Kevin Brown, the new chairman of the Mohegan Tribal Council, which serves as the gaming authority’s management board, said he was “pleased and comfortable” with the MTGA’s direction and refinancing that will save $16 million a year in interest payments.

    He said the tribe was extremely disappointed by a Nov. 5 referendum in Palmer, Mass., where voters narrowly defeated Mohegan Sun’s plan to develop a $1 billion resort casino and water park. A recount scheduled for Tuesday is not expected to change the outcome.

    Brown said the tribe would consider any plan that’s presented to it but has not pursued any other projects in Massachusetts.

    Gaming revenues at the MTGA casinos declined 2.9 percent in the quarter. Slot-machine revenues were down 6.2 percent but table-games revenues were up 4.9 percent. Mitchell Etess, the MTGA’s chief executive officer, said the slots and tables markets have been reacting differently in recent months, which may have something to do with generational differences. Table-games players tend to be younger than slots players.

    Etess said increases in adjusted EBITDA and income at Mohegan Sun in Uncasville were primarily attributable to higher table-games revenue and reductions in operating costs. Entertainment revenue also was up during the quarter, he said, due to a greater number of shows at Mohegan Sun Arena.

    Pocono Downs’ new $50 million, 238-room hotel opened to the public Friday.

    b.hallenbeck@theday.com

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