UNCASVILLE, CT – Mohegan Tribal Gaming Authority (MTGA) announced operating results for its fourth fiscal quarter ending on Sept. 30, 2022.
| Mohegan Operating Results | |||||||
| Three Months Ended | Variance | ||||||
| ($ in thousands, unaudited) | Sept. 30, 2022 | Sept. 30, 2021 | $ | % | |||
| Net revenues | $412,994 | $391,235 | $21,759 | 5.6% | |||
| Income from operations | $63,463 | $64,950 | $(1,487) | (2.3)% | |||
| Net income attributable to MTGA | $29,750 | $23,974 | $5,776 | 24.1% | |||
| Adjusted EBITDA1 | $99,759 | $110,240 | $(10,481) | (9.5)% |
“Our adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for fiscal 2022 of $403.9 million was the highest in our 26-year history,” said Raymond Pineault, Chief Executive Officer of Mohegan. “The first full fiscal year of operations of Mohegan Casino Las Vegas, the launch of Mohegan Digital, and the reopening and ramp-up of Niagara Resorts, all contributed to these results.”
Carol Anderson, Chief Financial Officer of Mohegan, also noted, “Our adjusted EBITDA margin of 24.2 percent for the quarter was 260 basis points higher than our pre-COVID-19 fourth quarter of fiscal 2019. Compared with the prior-year period, our adjusted EBITDA margin declined due to the continued reintroduction of certain lower margin non-gaming amenities, as well as increased labor and utilities costs.”
The growth in net revenues compared with the prior-year period was primarily driven by a full period of operations and a return to relatively normal operating conditions at the Niagara Resorts, combined with the continued growth in our online casino gaming and sports wagering operations in Connecticut.
| Mohegan Sun | |||||||
| Three Months Ended | Variance | ||||||
| ($ in thousands, unaudited) | Sept. 30, 2022 | Sept. 30, 2021 | $ | % | |||
| Net revenues | $236,761 | $241,402 | $(4,641) | (1.9)% | |||
| Income from operations | $48,566 | $58,116 | $(9,550) | (16.4)% | |||
| Net income | $49,263 | $58,543 | $(9,280) | (15.9)% | |||
| Adjusted EBITDA | $65,160 | $76,609 | $(11,449) | (14.9)% |
Net revenues decreased $4.6 million compared with the prior-year period, primarily due to declines in both slot and table game revenues, reflecting lower overall gaming volumes and hold percentages. These results were partially offset by higher non-gaming revenues. Adjusted EBITDA of $65.2 million was 14.9 percent unfavorable compared with the prior-year period, in which there were significantly lower labor, marketing and other operating expenses. The adjusted EBITDA margin of 27.5 percent was 160 basis points favorable compared with the pre-COVID-19 fourth quarter of fiscal 2019, but 420 basis points unfavorable compared with the prior-year period.
| Mohegan Pennsylvania | |||||||
| Three Months Ended | Variance | ||||||
| ($ in thousands, unaudited) | Sept. 30, 2022 | Sept. 30, 2021 | $ | % | |||
| Net revenues | $64,678 | $68,087 | $(3,409) | (5.0)% | |||
| Income from operations | $10,315 | $12,418 | $(2,103) | (16.9)% | |||
| Net income | $10,318 | $11,649 | $(1,331) | (11.4)% | |||
| Adjusted EBITDA | $13,218 | $15,608 | $(2,390) | (15.3)% |
Net revenues decreased $3.4 million compared with the prior-year period primarily due to lower gaming revenues as a result of lower gaming volumes and table game hold percentage. Non-gaming revenues increased $1.1 million compared with the prior-year period primarily driven by higher food and beverage revenues. Adjusted EBITDA decreased $2.4 million, or 15.3 percent, compared with the prior-year period, primarily due to the decrease in net revenues. Adjusted EBITDA margin of 20.4 percent was 190 basis points favorable compared with pre-COVID-19 fourth quarter fiscal 2019, but 250 basis points unfavorable compared with the prior-year period.
| Niagara Resorts | |||||||
| Three Months Ended | Variance | ||||||
| ($ in thousands, unaudited) | Sept. 30, 2022 | Sept. 30, 2021 | $ | % | |||
| Net revenues | $84,544 | $58,009 | $26,535 | 45.7% | |||
| Income from operations | $14,326 | $12,915 | $1,411 | 10.9% | |||
| Net income | $12,037 | $9,658 | $2,379 | 24.6% | |||
| Adjusted EBITDA | $17,891 | $16,744 | $1,147 | 6.9% |
Net revenues of $84.5 million and adjusted EBITDA of $17.9 million were $26.5 million and $1.1 million favorable compared with the prior-year period, respectively, reflecting a full period of operations and a return to relatively normal operating conditions. The Niagara Resorts were temporarily closed effective Mar. 18, 2020, following the outbreak of COVID-19, and reopened on Jul. 23, 2021 under various COVID-19 related restrictions. Adjusted EBITDA margin of 21.2 percent was 1,000 basis points favorable compared with our pre-COVID-19 fourth quarter of fiscal 2019, but 770 basis points unfavorable compared with the prior-year period.
| Management, development and other | |||||||
| Three Months Ended | Variance | ||||||
| ($ in thousands, unaudited) | Sept. 30, 2022 | Sept. 30, 2021 | $ | % | |||
| Net revenues | $15,887 | $16,318 | $(431) | (2.6)% | |||
| Income from operations | $997 | $4,451 | $(3,454) | (77.6)% | |||
| Net income | $6,880 | $3,582 | $3,298 | 92.1% | |||
| Adjusted EBITDA | $10,402 | $12,103 | $(1,701) | (14.1)% |
Adjusted EBITDA of $10.4 million was 14.1 percent unfavorable compared with the prior-year period, primarily due to increased labor costs and higher costs related to certain other professional services. The increase in net income was primarily driven by a gain on fair value adjustment due to changes in the estimated fair value of the warrants and put option related to Inspire Korea, partially offset by higher interest expense and the decline in income from operations.
| All other | |||||||
| Three Months Ended | Variance | ||||||
| ($ in thousands, unaudited) | Sept. 30, 2022 | Sept. 30, 2021 | $ | % | |||
| Net revenues | $12,388 | $8,703 | $3,685 | 42.3% | |||
| Income (loss) from operations | $618 | $(1,035) | $1,653 | N.M. | |||
| Net loss | $(913) | $(2,548) | $1,635 | 64.2% | |||
| Adjusted EBITDA | $2,490 | $572 | $1,918 | 335.3% | |||
| N.M. = Not meaningful |
Adjusted EBITDA of $2.5 million was primarily driven by the continued growth in online casino gaming and sports wagering operations in Connecticut. On Aug. 2, 2022, PlayFallsview was launched, a new digital gaming platform in the Province of Ontario.
| Corporate | |||||||
| Three Months Ended | Variance | ||||||
| ($ in thousands, unaudited) | Sept. 30, 2022 | Sept. 30, 2021 | $ | % | |||
| Net revenues | $104 | $298 | $(194) | (65.1)% | |||
| Loss from operations | $(11,363) | $(21,899) | $10,536 | 48.1% | |||
| Net loss | $(47,839) | $(56,894) | $9,055 | 15.9% | |||
| Adjusted EBITDA | $(9,406) | $(11,380) | $1,974 | 17.3% |
Adjusted EBITDA was $2.0 million favorable compared with the prior-year period, primarily due to lower payroll costs.