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Mohegan Gaming & Entertainment Announces Second Quarter Fiscal 2019 Operating Results

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Mohegan Gaming & Entertainment Announces Second Quarter Fiscal 2019 Operating ResultsReading Time: 5 minutes

 

Mohegan Gaming & Entertainment , a master developer and operator of premier global integrated entertainment resorts, including Mohegan Sun in Uncasville, Connecticut and Inspire Korea in Incheon, South Korea, announced today operating results for its second fiscal quarter ended March 31, 2019.

“Volume trends across our portfolio remain inline to better than expected as overall gaming volumes at our flagship property, Mohegan Sun, remain robust despite completing our second full quarter of increased competitive pressure in the Northeast,” said Mario Kontomerkos, President & Chief Executive Officer.  “Adjusting for unusually low table hold, overall MGE EBITDA would have been largely in line with our expectations, flat with last year’s comparable period, and well ahead of recent fiscal year 1Q19 performance.  At the same time, non-gaming results continue to be healthy and remain a driving factor for our growth at Mohegan Sun.  These revenue enhancements have been driven, in part, by the recent adoption of our $100 million revenue and cost improvement program – a plan we remain committed to delivering over the next several years.  Outside of the Northeast, cash flows from our managed portfolio grew strongly, up 86% year over year.  Looking ahead, in June we expect to assume operational control of two major Niagara Falls, Canada assets which will mark the first international operations for MGE and will provide increased earnings and cash flow diversity for our stakeholders.  Similarly, we have begun to mobilize construction at our development site in Incheon, South Korea, having completed our negotiations with our general contractor and following the receipt of all necessary construction permits and approvals.”

Selected consolidated operating results for the second quarter ended March 31, 2019, and prior year period (unaudited):

  • Net revenues of $307.7 million vs. $332.0 million in the prior year period, a 7.3% decrease; and
  • Income from operations of $22.2 million vs. $56.1 million in the prior year period, a 60.4% decrease primary driven by one time accelerated depreciation due to the closure of Casino of Wind; and
  • Adjusted EBITDA of $67.2 million vs. $79.9 million in the prior year period, a 15.9% decrease.

Consolidated net revenues and Adjusted EBITDA declined during the quarter, driven by lower gaming revenues at Mohegan Sun and Mohegan Sun Pocono largely driven by unfavorable hold in the quarter at both properties.  These declines were partially offset by improved non-gaming revenue growth, including entertainment and hotel revenues, at Mohegan Sun, as well as stronger Corporate Adjusted EBITDA, driven by tighter expense management and improved financial performance at ilani Casino Resort.

On October 1, 2018, the Company adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), on a modified retrospective basis.  As such, results for the three months and six months ended March 31, 2019 in this release are presented under this new guidance, while results for the three months and six months ended March 31, 2018 remain presented under prior guidance.  For comparative results for all periods as reported under the new guidance, please see our supplemental earnings deck, available on our website (https://mohegangaming.com/financial-information/).

Mohegan Sun

Operating results (in thousands, unaudited):





For the Three Months Ended  



March 31,



March 31,







Percentage



2019



2018



Variance



 Variance

Net revenues

$               238,391



$           260,354



$        (21,963)



(8.4%)

Income from operations (1)

$                 19,913



$             57,779



$        (37,866)



(65.5%)

Adjusted EBITDA

$                 59,341



$             77,746



$        (18,405)



(23.7%)

















(1) Includes $21.6 million in accelerated depreciation related to Casino of the Wind.

Net revenues and Adjusted EBITDA declined during the quarter, driven by lower overall gaming revenues and unfavorable table hold during the period, which was partially offset by stronger non-gaming results.  Slot and table volumes declined 8.7% and 3.2%, respectively, in line with internal expectations.  Had table hold percentage fallen into the historically normal range, net Revenues and Adjusted EBITDA would have declined less than 3.1% and 7.4%, respectively, on a 606 to 606 basis.  Non-gaming revenues increased during the quarter, driven by improvement in nearly all segments of the business.  The higher than normal decline in income from operations relates to the one-time accelerated depreciation expense of $21.6 million, caused by the closure of the Casino of the Wind in March, as that space will be designed and repurposed for higher and better use.

Mohegan Sun Pocono

Operating results (in thousands, unaudited):





For the Three Months Ended  



March 31,



March 31,







Percentage



2019



2018



Variance



 Variance

Net revenues

$                 61,241



$             67,130



$          (5,889)



(8.8%)

Income from operations 

$                   8,214



$               8,872



$             (658)



(7.4%)

Adjusted EBITDA 

$                 11,592



$             12,230



$             (638)



(5.2%)

Net revenues declined during the quarter driven by lower gaming revenues, largely reflecting the adverse impact from lower table hold.  However, the year-over-year decline in Adjusted EBITDA was more muted due to a strong focus expense management, including lower payroll costs and certain casino marketing and promotional expenses. Notably, local marketing activity has started to return to more normalized levels following aggressive promotional activity from a regional competitor over the last several quarters.

Corporate

Operating results (in thousands, unaudited):





For the Three Months Ended  



March 31,



March 31,







Percentage



2019



2018



Variance



 Variance

Net revenues

$                   8,125



$               4,593



$            3,532



76.9%

Loss from operations

$                 (5,901)



$            (10,579)



$            4,678



44.2%

Adjusted EBITDA

$                 (3,716)



$            (10,122)



$            6,406



63.3%

The increase in net revenues and Adjusted EBITDA was primarily due to higher management fees from ilani Casino Resort driven by continued improvement in performance at the property.

MGE Property Information









Net Revenues



Income (Loss) from Operations



Adjusted EBITDA

(in thousands, unaudited)



      For the Three Months Ended



For the Three Months Ended



For the Three Months Ended







March 31,



March 31,



March 31,



March 31,



March 31,



March 31,







2019



2018



2019



2018



2019



2018

Mohegan Sun





$         238,391



$        260,354



$           19,913



$           57,779



$           59,341



$           77,746

Mohegan Sun Pocono



61,241



67,130



8,214



8,872



11,592



12,230

Corporate





8,125



4,593



(5,901)



(10,579)



(3,716)



(10,122)

Inter-segment revenues



(60)



(60)









Total





$         307,697



$        332,017



$           22,226



$           56,072



$           67,217



$           79,854

Other Information

Liquidity

As of March 31, 2019, MGE held cash and cash equivalents of $91.4 million, compared to $103.9 million as of September 30, 2018.  As of March 31, 2019, $55.0 million was drawn on MGE’s $250.0 million revolving credit facility, while no amounts were drawn on MGE’s $25.0 million line of credit.  As of March 31, 2019, letters of credit issued under the revolving credit facility totaled $2.3 million, of which no amounts were drawn.  Inclusive of letters of credit, which reduce borrowing availability under the revolving credit facility, MGE had approximately $192.7 million of borrowing capacity under its revolving credit facility and line of credit as of March 31, 2019.

 

About Mohegan Gaming & Entertainment:

Mohegan Gaming & Entertainment is a master developer and operator of premier global integrated entertainment resorts, including Mohegan Sun in Uncasville, Connecticut, and Inspire in Incheon, South Korea.  The Company is owner, developer, and/or manager of integrated entertainment resorts throughout the United States, including Connecticut, New Jersey, Washington, Pennsylvania, Louisiana, Northern Asia, and, beginning in mid-2019, Niagara Falls, Canada.  MGE owns and operates Connecticut Sun, a professional basketball team in the Women’s National Basketball Association, and the New England Black Wolves, a professional lacrosse team in the National Lacrosse League.  For more information on MGE and our properties, visit www.mohegangaming.com.

 

SOURCE Mohegan Gaming & Entertainment


Source: Latest News on European Gaming Media Network
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: Mohegan Gaming & Entertainment Announces Second Quarter Fiscal 2019 Operating Results

George Miller (Gyorgy Molnar) started his career in content marketing and has started working as an Editor/Content Manager for our company in 2016. George has acquired many experiences when it comes to interviews and newsworthy content becoming Head of Content in 2017. He is responsible for the news being shared on multiple websites that are part of the European Gaming Media Network.

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GR8 Tech Unveils “Turn the Win On” Tournament Suite

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GR8 Tech has launched a major upgrade to its Tournament engine, featuring a new tournament lobby, enhanced multi-currency support, and manual prize distribution. These new additions allow operators to run global tournaments more efficiently while boosting player engagement.

Tournaments play a big role in increasing player retention and driving revenue growth,” said Sergey Ghazaryan, CRO at GR8 Tech. “Our latest enhancements allow operators to customize tournaments and maximize participation. The more engaged players are, the longer they stay and the more they play, which leads to an increased profit for the operator.

 

Tools to Turn the Win On: What’s New in GR8 Tech’s Tournament Suite?

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Designed with a client-first mindset, “Turn the Win On” Tournament Suite provides operators with seamless flexibility, deeper engagement, and effortless management—all in one powerful solution. And more enhancements are already in development, bringing data-driven insights, advanced customization, and new engagement mechanics to elevate tournament experiences even further. GR8 Tech’s Tournament Suite continues to evolve, ensuring operators have the tools to stay ahead in a competitive market and maximize every tournament’s potential.

The post GR8 Tech Unveils “Turn the Win On” Tournament Suite appeared first on European Gaming Industry News.

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Indian cricket legend becomes the latest athlete to promote the world’s number one crash games to his fans

SPRIBE, the pioneering software provider behind the world’s number one crash game, Aviator, has added cricket legend Suresh Raina to its growing roster of brand ambassadors.

Raina is a former Indian international cricketer known for his explosive batting, sharp fielding and inspiring team leadership.

He was a key player in India’s 2011 ICC Cricket World Cup victory and was also a star player for the Chennai Super Kings, helping the team secure multiple Indian Premier League titles.

His accolades don’t stop there. Raina was the first Indian to score a T20I century and remains one of League’s top run-scorers to this day.

Outside of cricket, he’s a successful entrepreneur, philanthropist and influential public figure.

As an Aviator brand ambassador, Raina will promote the game to his fans across various channels and through a range of campaigns over the coming 12 months.

He joins other Aviator brand ambassadors such as UFC superstars like Tom Aspinall, Alex Pereira, Johnny Walker and Merab Dvalishvili.

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David Natroshvili, Founder & CEO at SPRIBE, said: “We are hitting for six with the partnership with Suresh, one of the most iconic and celebrated cricketers in India.

“Suresh was renowned for his explosive batting and thrilling style of play, and this makes him the perfect person to help us drive awareness of Aviator among cricket and sports fans in India.

“Aviator is the original crash game and players love the high-risk/high-reward gameplay it provides, and we are really looking forward to rolling out campaigns featuring Suresh that show this.”

Suresh Raina, former Indian cricketer and now Aviator ambassador, added: “Playing Aviator is the closest I have come to the thrill of playing professional cricket and I couldn’t be happier to help drive awareness of the game among my fans and followers.

“Aviator is action-packed with tons of social interaction and plenty of big win potential. Players have control over the outcome as they get to decide when to cash out – for those that can hold their nerve the longest, the biggest prizes await.

“SPRIBE has some great campaigns planned for the months ahead and I look forward to working with the team to help Aviator really take flight among cricket fans in India and beyond.”

The post Hitting for six: SPRIBE announces Suresh Raina as Aviator brand ambassador appeared first on European Gaming Industry News.

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1spin4win announces casino network promotion “Variety of Luck” with €25K prize pool

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Fast-growing online slots provider 1spin4win is launching a new casino promotion on a wide selection of its classic games, from fruit-themed to story-based ones, to help operators engage their players.

1spin4win’s fresh Cash & Drops promo will take place from March 28 to April 10, 2025. The prize pool will amount to €25,000, the highest sum offered by 1spin4win so far, compared to previous campaigns, which distributed €20,000 each. The rewards will be randomly awarded across 680 cash prizes to players who wager real money in dedicated games. Wins will be automatically credited to players’ balances without the need for any extra configurations from the online casino.

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This is one of the many effective promotional tools from 1spin4win, which also include special in-game features and additional marketing solutions such as pre-releases and free spins, all of which cultivate player loyalty. “Variety of Luck” will help online iGaming platforms attract players, enhance their engagement and loyalty, increase GGR, and boost betting volume. It will also foster brand support and visibility.

Olga Hlukhovskaya, Business Development Director at 1spin4win, commented, “We appreciate our clients and always think of ways to help them thrive. Cash & Drops campaigns are an example of this. They allow our partner operators to re-engage their audience and advertise player-friendliness, all with minimum effort. Like any promo tool by 1spin4win, “Variety of Luck” is easy to use since we take care of all technical aspects ourselves.”

10 exciting games were picked for this network promotion, each representing its own version of iGaming entertainment, but all of them united by the concept of luck. Players can hit it big in the following classic slot titles:

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For further details and inquiries, please contact your appointed Account Manager, or 1spin4win’s Business Development Director at [email protected].

To learn more about promotional tools and custom offers, visit the studio’s website.

The post 1spin4win announces casino network promotion “Variety of Luck” with €25K prize pool appeared first on European Gaming Industry News.

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