Reported results from the third quarter show a 206% increase in net revenue to $328.2m, compared to $107.2m in Q3 the previous year. However, operational income figures show a $64m loss in comparison to the lesser amount of $20.5m in the prior-year period.
Raymond Pineault, CEO of MGE, said: “Another quarter of strong results demonstrates that MGE remains well positioned as we continue to emerge from the pandemic.
“In addition, we recently announced Mohegan Digital, which will provide leading sports betting and digital gaming solutions to our loyal customers and attract new customers on a broader scale. This new business line will diversify our future revenue streams and contribute to the financial stability of MGE. MGE Niagara Resorts reopened to the public on July 23rd after just over 16 months of closure due to Covid-19 (coronavirus) restrictions in Ontario.”
Despite this loss, there were also year-on-year improvements. These were in relation to the coronavirus pandemic-related property closures in 2020. In comparison to the third quarter of 2019, consolidated net revenue declined 6%, while adjusted EBITDA increased 25%.
The report shows the Q3 adjusted EBITDA increased to $101.7m vs. $8.4m in the prior-year period, a massive 1,111% increase.
The improvement was largely driven by the reductions in operating costs and expenses, taking into account lower payroll costs and marketing expenses. While these figures are high, net revenue was impacted by the Covid-related closure of MGE Niagara Resorts and social distancing protocols.
Carol Anderson, CFO of MGE, also noted: “These results are indicative of the continued recovery as most remaining Covid-related restrictions were lifted at our United States properties during the quarter.
“At our flagship property Mohegan Sun, while revenues were below third quarter 2019 levels, which is the closest comparable due to property closures in the third quarter of 2020, adjusted EBITDA was $82.4m, 23% favourable to the third quarter of 2019, and EBITDA margin was up 1,065 basis points over the same period.
“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.”
