Mohegan, the leading integrated resort developer, released its unaudited financial results for the third fiscal quarter ended June 30, 2022.
Mohegan Unveils Third Fiscal Quarter Results
On Thursday, the Mohegan Tribal Gaming Authority posted the results for Q3, showing an increase of nearly 30% in net revenues. Overall, Mohegan’s net revenues for the three months until June 30 this year hit $417.1 million. When compared to the $328.2 million reported for the same period in 2021, an increase of $88.9 million or 27.1% is observed.
It’s no surprise that Mohegan also saw an increase in income from its operations for the third fiscal quarter of this year. The latest financial results point out that Mohegan’s income from operations hit $90.1 million, up 40.7% or $26.1 million when compared to the $64 million in income from operations reported for the three months until June 30, 2021.
Another increase was observed in the reported adjusted EBITDA for the period. In the third fiscal quarter ended June 30 last year, adjusted EBITDA hit $101.7 million. For the same period this year, adjusted EBITDA increased by $18.3 million or 18% to $120 million.
Revenue Increase Is Observed within All Business Segments
The Mohegan Tribal Gaming Authority provided a breakdown of the $417.1 million in net revenue reported for the third fiscal quarter this year, outlining an increase in all of the separate business segments. For the three months until June 30 last year, Mohegan’s gaming revenue hit $241 million, while for the same period this year, it increased by 21.8% to $294 million.
Additionally, the company’s food and beverage revenue soared in the three months until June 30 this year. For the same period in 2021, Mohegan reported $20.8 million in revenue from food and beverage operations, while this year, the revenue increased by 71% to $35.6 million.
The third fiscal quarter this year proved to be a success for the company’s hotel operations reporting revenue of $30.3 million, up 36% when compared to the same period last year. Last but not least, Mohegan’s revenue reported from retail, entertainment and other increased to $57.2 million.
The Company’s Diversification Strategy Brings Success
Raymond Pineault, Mohegan’s CEO, said that the consolidated adjusted EBITDA of $120 million for the three months until June 30, 2022, was the highest reported in the company’s history. Speaking about MGE Niagara Resorts, the company’s CEO pointed out that this was the first full fiscal quarter for the property without COVID-related restrictions. Pineault added that Mohegan Digital “continues to execute a strategy that is focused on profitability.” Last but not least, he explained that the recent results reaffirm the success of Mohegan’s strategy for diversification.
“These results reflect the success of Mohegan’s diversification strategies.”Raymond Pineault, CEO at Mohegan
Carol Anderson, the company’s CFO, explained that the consolidated adjusted EBITDA margin of 28.8% was higher when compared to the pre-pandemic fiscal quarter in 2019. However, she explained that when compared to the same period in 2021, “the Adjusted EBITDA margin has declined due to the continued reintroduction of some lower margin non-gaming amenities since the prior-year period.”