Mohegan Gaming & Entertainment has announced operating results for its first fiscal quarter ended December 31, 2019, showing net revenues of $399.1m, up by 24.9% from $319.5m year-on-year.
Income from operations was $43.4m, unchanged from $43.4m in the prior year period, while adjusted EBITDA came in at $75.1m, up by 4.5% on $71.9m year-on-year. Consolidated net revenues increased 24.9%, driven primarily by the recent acquisition of MGE Niagara Resorts.
On a like-for-like basis, revenue increases were driven by Mohegan Sun Pocono, and continued outperformance from non-gaming revenue growth, including entertainment and hotel revenues at Mohegan Sun. These increases were partially offset by lower gaming volumes at Mohegan Sun.
Adjusted EBITDA increased 4.5% during the quarter, reflecting the contributions noted above as well as stronger EBITDA from the Management, Development and Other segment. Importantly, said the firm, adjusting for the impact of MGE Niagara Resorts, overall Adjusted EBITDA was approximately flat with the prior year first quarter, with overall EBITDA margins above prior year levels, reflecting the positive impact revenue enhancements and expense controls have had on the underlying core business.
Net revenues and Adjusted EBITDA declined modestly during the quarter, driven by lower overall gaming revenues which were partially offset by stronger non-gaming results. Slot volumes declined 6.7%, while table volumes decreased 6.4%.
Net revenues increased during the quarter driven by all revenue segments, though most notably by hotel and food & beverage. Gaming revenues benefited from an increase in both table drop and slot handle in period, both translating to improvements in gross table win and slot win. Better performance in overall gaming reflects a more rational competitive environment and upgrades to the overall property. The year-over-year increase in Adjusted EBITDA was largely driven by improvements in table games and the positive contribution from hotel and food & beverage.
Topline performance at the recently acquired MGE Niagara Resorts was adversely impacted by the combination of lower than expected table hold in the quarter and the impact of especially challenging weather.
“I am pleased to report that fiscal 2020 is off to a solid start with consolidated first-quarter revenues and adjusted EBITDA above prior year results, driven by the strong year over year growth in revenue and Adjusted EBITDA at Mohegan Sun Pocono and the inclusion of MGE Niagara Resorts,” said Mario Kontomerkos, President and CEO of MGE.
“Importantly, on a like for like basis, excluding the positive contribution of MGE Niagara Resorts, overall adjusted EBITDA was roughly flat with the prior year while overall adjusted EBITDA margins improved, a remarkable achievement considering the competitive pressures in the northeast region over the last 18 months.
“Performance at our flagship property Mohegan Sun was strong due to better expense management and continued strong performance in non-gaming segments, highlighted by our recent hosting of the Miss America Competition.
“Looking beyond the United States, construction is progressing on-time and on-budget in Inspire Korea, while the integration of the MGE Niagara Resorts progresses well despite the impact of lower table hold rates and adverse weather in the quarter. Finally, our expansion into Las Vegas took a large step forward this week, as MGE and our partner Virgin Hotels began the renovation of the future Virgin Hotels Las Vegas set to open in late 2020.”