Mohegan CEO Raymond Pineault has hailed the casino operator’s diversification strategy after online gaming and sports betting activities drove an overall increase in net revenues and earnings in the corporation’s fiscal first quarter.
In the three months through to the end of December 2022, net revenues increased year-on-year by 1.2% from $402.0m to $406.6m, leading to a 3.8% increase in adjusted earnings before interest, tax, depreciation and amortization (EBITDA) from $97.4m to $101.1m.
The encouraging overall figures were despite a 4.8% fall in net revenue to $239.4m from $251.6m and a 13.3% drop in adjusted EBITDA from $78.2m to $67.8m at its flagship Mohegan Sun venue in Connecticut. Mohegan attributed these interim results at Mohegan Sun to declines in both slot and table games revenues, as well as unfavorable weather conditions and increased labor and other operating expenses.
However, Mohegan, which also owns and operates several other casinos across the United States, Canada and South Korea, offset these figures – as well as an additional drop in revenues and earnings at Mohegan Pennsylvania – with improved performances elsewhere.
Specifically, a 93% increase in net revenues from $10.2m to $19.6m and a sharp rise in adjusted EBITDA from $1.2m to $8.4m – attributed to ‘all other’ activities, including online casino and sports betting in Connecticut – helped to steady the ship.
The corporation, previously known as Mohegan Gaming & Entertainment, also benefited from normal operating conditions at its Niagara Resorts venue.
“Our consolidated adjusted EBITDA of $101.1m continues our trend of strong performance,” Pineault said. “Our diversification strategy and continued focus on profitability have enabled Mohegan to offset some of the inflationary and labor pressures and achieve these strong results.”