Mohegan Digital made strides by expanding into Ontario, Canada, during the third quarter, while also reporting growth in Connecticut. Digital operations emerged as a key highlight for Mohegan, which saw a decline in several traditional segments, particularly at its flagship land-based casino, Mohegan Sun, located in Connecticut. Chief executive Ray Pineault emphasized the company’s focus on growth within the digital sector when reviewing the quarterly results.
Overall, net operating revenue for the three months ending June 30 fell by 0.4% compared to the previous year. The gaming segment experienced the most significant decline, with revenue dropping by 4.1% to $281.9 million. Despite this dip, gaming remained Mohegan’s largest revenue source.
In contrast, revenue from food and beverages increased by 12.6% to $40.1 million, while hotel revenue rose by 0.3% to $30.4 million. There was also a 10.1% rise in retail entertainment and other revenue for the quarter.
Examining individual segments, revenue at Mohegan Sun decreased by 2.5% year-on-year, totaling $230.7 million, attributed to lower volumes in slot and table games. However, strong growth in non-gaming sectors such as food, beverage, entertainment, and hotel revenues helped to mitigate the decline in gaming revenue. Mohegan Pennsylvania also saw a revenue reduction of 2.3% to $65.2 million due to lower gaming volumes, although this was offset by gains in food, beverage, and hotel revenue.
At Niagara Resorts, revenue improved by 1.8% to $81.2 million, driven by the enhancement of non-gaming amenities, including the new OLG Stage entertainment venue, despite a $5.2 million drop in gaming revenue from lower slot volumes.
Amidst the downturn in land-based operations, digital revenue surged by 56.6% to $16.7 million, supported by the Ontario launch and growth in Connecticut. Rich Roberts, president of Mohegan Digital, stated that the focus on iGaming aims to bolster physical properties rather than aggressively expanding across the U.S. "We won’t be spreading rapidly across the US and looking to compete in every state," Roberts said. "Mohegan Digital supports the Mohegan brand as an extension of the properties."
Operating costs for the quarter rose by 1.8% to $333.0 million. Mohegan reported $29.5 million in finance-related expenses, resulting in a pre-tax profit of $52.8 million, a decline of 16.3% from the previous year. After accounting for $2.2 million in taxes and $64,000 in profit attributable to non-controlling assets, the net profit amounted to $50.6 million, down 14.8%. Adjusted EBITDA also fell by 9.5% to $108.7 million, though Mohegan noted it was still the third-highest quarterly total in its 26-year history.
