Mohegan Gaming and Entertainment (MGE) reported growth in revenue and net profit during the fourth quarter of its 2020-21 financial year, while adjusted EBTIDA reached a record $110.2m.
Revenue for the three months to September 30, 2021 amounted to $391.2m, up 33.1% from $294.0m in the corresponding period last year.
MGE put this growth primarily down to the easing of novel coronavirus (Covid-19) measures across the US, with is casinos able to operate with only minimal restrictions throughout the quarter.
Gaming revenue hiked 24.7% to $286,7m, while hotel revenue climbed 52.2% to $28.4m, food and beverage revenue 125.4% to $28.4m and retail, entertainment and other revenue 46.3% to $47.7m.
The operator’s main source of revenue was its Mohegan Sun property in Connecticut, with revenue here amounting to $241.4m, up 14.0% year-on-year following the easing of Covid-19 rules in the state. This, MGE said, allowed more visitors into the casino, while it was also able to stage events once again at the adjoining arena facility.
Revenue at the Mohegan Sun Pocono site in Pennsylvania also increased 22.5% to $68.1m, while its MGE Niagara Resorts segment, which includes its Fallsview Casino Resort and Casino Niagara properties in Ontario in Canada, saw revenue rocket 367.7% to $58.0m.
Revenue from management, development and other operating results increased 23.8% to $16.3m, driven by continued growth in management and development fees from the Ilani property in Washington.
In addition, MGE noted $8.7m in revenue from the new Mohegan Sun Casino Las Vegas, which opened to the public in March of this year.
Operating costs were 33.8% higher at $326.3m, while other costs also edged up to $37.0m, mainly due to $43.6m in interest expenses, but this was partially offset by other income and the early extinguishment of debt.
Pre-tax profit was 63.5% higher at $24.2m, while MGE also noted adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was 33.1% higher at $110.2m, which represented a new quarterly record for the operator.
MGE paid $3.7m in income tax and after also accounting for a $211,000 loss related to non-controlling assets, net profit for Q4 was $24.0m, up 29.0% year-on-year.
“Our consolidated adjusted EBITDA of $110.2m was the highest in our 25-year history; this was due in large part to the hard work, dedication and support of all our team members throughout the organization,” MGE chief executive Raymond Pineault said.
Looking at how Q4 impacted MGE’s full-year performance, revenue for the 12 months to the end of September was 10.2% higher at $1.23bn.
Operating costs were reduced by 9.1% to $1.04bn, though other expenses were 35.4% up to $183.5m due to increased spend on interest expense and loss on modification and the early extinguishment of debt.
This left a pre-tax profit of $1.0m, compared to a $168.7m loss at the same point last year. MGE received $6.5m in tax provision, which, after taking off $622,000 in losses related to non-controlling assets, meant it ended the year with a $6.7m net profit, compared to a $162.2m loss in 2020.
Reflecting on the year, Pineault also noted a number of key events that took place after the end of the reporting period, primarily the launch of retail sports betting at Mohegan Sun and the roll-out of online sport betting and igaming in Connecticut.
In addition, he referenced the completion of $1.55bn in financing for Inspire Korea, a new resort that is expected to open in South Korea in 2023.