The Mohegan Tribal Gaming Authority announced an increase in its second-quarter revenue on Monday, propelled by outstanding results from its digital gaming sector, even though net income saw a significant decline compared to the previous year.
Total net revenues for the quarter ending March 31 rose by 2.4%, reaching $429 million compared to $418.8 million a year prior, while operational income grew by 1.3% to $60.5 million.
Adjusted EBITDA increased by 1.8% to $85.4 million, with Adjusted EBITDAR rising by 4.0%. Nonetheless, net income plummeted by 69.9% to $14.1 million, down from $46.9 million in the same quarter last year.
A statement from the tribe indicated that the robust outcomes were mainly due to Mohegan Digital achieving its highest quarterly performance to date. However, these gains were somewhat counteracted by an unfavorable table hold and reduced table volumes at Mohegan Sun in Connecticut.
Mohegan Digital set new quarterly records for net revenues, Adjusted EBITDA, and average revenue per monthly active user. The digital segment’s net revenues surged by 40.2%, reaching $79.3 million, up from $56.56 million a year ago, while Adjusted EBITDA witnessed a 47.9% increase to $39.7 million. During the quarter, the average revenue per monthly active user for Mohegan Digital Connecticut hit a record high of $470.
On its part, Mohegan Sun captured over 60% of Connecticut’s slot market share in March, marking its highest monthly market share in the last five years, though the previously mentioned unfavorable table hold and declining table volumes at the resort tempered this growth.
Revenue from International Resorts dipped by 0.9% to $66.5 million, and Adjusted EBITDA declined by 33.1% to $1.8 million due to decreased revenue and heightened contractual lease costs. Previous period figures were revised to exclude operations related to Inspire Integrated Resort Co., Ltd., MGE Korea Limited, and certain subsidiaries from ongoing operations.
In addition to gaming operations, during this period, the organization reached an agreement to sell the Connecticut Sun WNBA team for $300 million.
Mohegan concluded the quarter with $126.9 million in cash and a borrowing capacity of $228.5 million.