Gaming and hospitality firm Mohegan saw its net revenue decrease a very slight 0.4% to $415.4 million in the three-month period ending 30 June, down from the $417 million the Mohegan Tribe-run operator posted in the same period last year.
Despite the slight decline, the quarter remained a solid one for the company.
“Our consolidated Adjusted EBITDA of $108.7 million was the third highest quarterly total in our 26-year history, while the prior-year comparable quarter was the highest to date,” said Raymond Pineault, Chief Executive Officer of Mohegan.
Carol Anderson, Mohegan’s Chief Financial Officer, highlighted that Mohegan’s Adjusted EBITDA margin of 26.2% showed a favorable increase of 268 basis points compared to their pre-COVID-19 third quarter in fiscal 2019, albeit reflecting a less favorable difference of 262 basis points when compared with the previous year’s equivalent period.
Mohegan’s digital segment delivered solid results, with 56.6% growth in the third quarter driven by strong growth in Connecticut and the addition of online gaming in Ontario. “We continue to see strong results from our digital segment and are focused on growing that line of business,” Pineault said.
Net revenue for the digital business stood at $16.6 million during the quarter, up from $10.6 million the previous year, the shining star for Mohegan’s latest quarterly performance. Adjusted EBITDA of $11.6 million was $4 million favorable compared with the prior-year period, the company said.
In contrast, the largest segment of decline was gaming, with revenue down 4.1% to $281.9 million, although it remains by far Mohegan’s largest source of revenue. Meanwhile, food and beverage revenue climbed 12.6% to $40.1 million, while hotel revenue was also up 0.3% to $30.4 million.
“In the prior-year comparable period, Mohegan Digital Connecticut benefited from a cumulative update to the revenue share allocation from our digital gaming partner, which impacted net revenues and Adjusted EBITDA,” a press release noted.
Net revenues decreased $5.8 million to $230.6 million compared with the prior-year period at flagship resort Mohegan Sun in Connecticut, primarily due to lower slot and table games volumes. Non-gaming growth driven by food, beverage, entertainment, and hotel revenues partially offset the decline in gaming revenues.
Meanwhile, at Mohegan Pennsylvania, net revenues decreased $1.5 million to $65.2 million compared to the same quarter in the previous fiscal, also due to lower gaming volumes. For its part, Niagara Resorts saw a $1.5 million increase in net revenue to $81 million, primarily driven by the continued ramp of non-gaming amenities, including the recently opened OLG Stage entertainment venue.