Master developer and operator of integrated casino resorts Mohegan Gaming & Entertainment (MGE) released today its second-quarter earnings report, posting net revenues of $328.3 million for the three months ended June 30, 2021.
Revenues Declined Compared to Pre-Pandemic Levels
Q2 2021 consolidated revenues posted 206.1% on the $107.2 million Q2 2020 reading, but when measured against the respective pre-pandemic quarter, Q2 2019, revenues declined by 5.6%. This, according to the company, was mainly due to the impact on the total of the closure of MGE Niagara Resorts and state-mandated social distancing protocols at the other properties.
Another quarter of strong results demonstrates that MGE remains well positioned as we continue to emerge from the pandemic.”Raymond Pineault, CEO, MGE
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for the reported quarter was $101.7 million, more than 11 times higher than the $8.4 million generated in Q2 2020. Unlike revenues, compared to the respective pre-pandemic Q2 2019, adjusted EBITDA showed a 24.6% increase, mainly driven by reductions in operating costs and expenses, such as lower payroll costs and marketing expenses.
These results are indicative of the continued recovery as most remaining COVID-related restrictions were lifted at our United States properties during the quarter.”Carol Anderson, Chief Financial Officer, MGE
MGE’s flagship property, Mohegan Sun, which registered increased visitation, positive gaming trends and final easing of coronavirus-related restrictions mid-way through the quarter, posted $220.1 million in revenue for the quarter, up 181% from the $78.2 million in the second quarter of 2020.
Adjusted EBITDA came out at $82.4 million, up 323.7% from the $19.5 million in Q2 2020. Compared to Q2 2019, adjusted EBITDA posted a 22.5% increase, mainly due to lower labor and marketing costs and reductions in non-gaming amenities.
Mohegan Sun Pocono in Pennsylvania accounted for $62.9 million in revenues, nearly five times higher compared to the $10.5 million in Q2 2020, while adjusted EBITDA came out at $15.3 million, a significant improvement to the negative $5.5 million in the second quarter of 2020. Compared to the pre-pandemic Q2 2019, adjusted EBITDA posted a 7.4% increase.
MGE Niagara Resorts posted negative adjusted EBITDA due to the property being shut for the entirety of the quarter as per the coronavirus-related restrictions implemented by the government in Ontario. The property managed to almost break even with its cash flows after deferring rent payments and receiving fixed service provider fees and reimbursement for permitted capital expenditure.
Mohegan Sun Casino Las Vegas registered its first full operating quarter, having opened to the public on March 25, 2021. Net revenues at the property accounted for $8.4 million, while adjusted EBITDA came out at $595,000.
Outside of Connecticut, ilani in Washington State continues to perform ahead of expectations, and Mohegan Sun Pocono, Mohegan Sun Las Vegas and Resorts are generating positive results.”Carol Anderson, Chief Financial Officer, MGE
Speaking about the future outlook, MGE CEO Pineault outlined the importance of the launch of the company’s digital division, Mohegan Sun Digital, to provide gaming solutions on a broader scale.
This new business line will diversify our future revenue streams and contribute to the financial stability of MGE.”Raymond Pineault, CEO, MGE
At the end of the reported quarter, MGE held cash amounting to $158.4 million, plus $215.7 million of borrowing credit capacity.