Mohegan Gaming & Entertainment, the developer and operator of global integrated entertainment resorts including Mohegan Sun in Uncasville, Connecticut, and Inspire Korea in Incheon, South Korea, has announced operating results for its first quarter ended December 31, 2018.
The firm reported that net revenues of $319.5m were down by 3.6% from $331.5m in the prior year period, while income from operations fell by 21.1% to $43.4m from $55m in the corresponding period. Adjusted EBITDA stood at $71.9m versus $76.0m in the prior year period, equal to a 5.4% decrease.
Consolidated net revenues declined modestly during the quarter, driven by slightly lower gaming revenues at Mohegan Sun and Mohegan Sun Pocono, and continued increases in promotional activities in the Mohegan Sun Pocono gaming market. These factors, combined with higher slot taxes assessed by the Commonwealth of Pennsylvania and increased healthcare costs, all contributed to the year-over-year decline in Adjusted EBITDA said the firm.
Mario Kontomerkos, President & Chief Executive Officer of MGE explained: “While consolidated first quarter revenues and Adjusted EBITDA were modestly below prior year results, we remain encouraged, as overall gaming volumes at our flagship property, Mohegan Sun, were better than expected following the first full quarter of increased competition in the Northeast gaming market.
“In addition, we are also excited to embark on the next phase of our integrated gaming and entertainment strategy, having recently announced a strategic partnership with the Kindred Group, a leading international online gaming and sports wagering operator. This agreement will provide Mohegan Sun Pocono with a total sports wagering solution, including technology and brand support for our brick and mortar sports book operation, along with a complete online sports waging offering.
“This announcement comes on the heels of our success at Resorts Atlantic City, which hosts the market leading DraftKings sports book. These experiences leave us well positioned to react quickly to the prospect for sports wagering legislation in Connecticut as well, to the extent that materializes in this current legislative session.”