Mohegan touts across-the-board growth in Q2 2022 results
Gaming operator sees YoY increases in revenue and adjusted EBITDA as profitability remains focus
Mohegan Gaming & Entertainment (MGE) saw across-the-board growth in the second quarter of 2022, thanks in part to a resurgence in retail business despite some lingering Covid-19 headwinds.
MGE reported net revenue of $358.5m, a 28.7% year-over-year (YoY) increase from the $278.6m it totaled in 2021.
Adjusted EBITDA came in at $86.7m, up 7.4% from $80.7m during the same period last year. Net losses, meanwhile, were down 82.6%from $15.99m in 2021 to $2.78m in Q2 2022.
“Our consolidated adjusted EBITDA of $86.7m reflects our strong performance and ongoing focus on profitability,” CEO Raymond Pineault said.
“Although visitation was somewhat impacted by the Omicron variant and poor weekend weather at our Northeast properties early in the quarter, the consolidated adjusted EBITDA margin of 24.2% was 234 basis points higher than the pre-Covid comparable fiscal 2019 quarter,” he added.
MGE attributed the improved financial results to a pair of factors working in its favor.
First was the return to mostly normal activity for its resort properties, which had experienced varying degrees of business slowdown – and in the cases of MGE Niagara Resorts and Mohegan Sun Pocono, formal closures – before Covid restrictions ultimately began to roll back en masse.
“These results demonstrate MGE’s ability to adapt to the ongoing COVID-19 pandemic, and reflect the current stabilizing operating environment,” CFO Carol Anderson said.
MGE was also buoyed by the launch of its digital division – highlighted by the rollout of a full igaming and online sports betting offering in Connecticut – as well as the addition of Mohegan Sun Las Vegas, which opened in late March.
Overall, the gaming giant proved nimble and adept during the uncertain period, which included some trimming around the margins as a cost-saving measure.
“We reintroduced some lower margin non-gaming amenities since the prior-year period, and last year also included temporary reductions in labor, marketing and entertainment expenses, as well as deferred operating expenses that were necessary to operate within the early phases of the Covid-impacted environment,” Anderson added.