Mohegan — Mohegan Gaming & Leisure reported a large downturn in quarterly earnings Thursday however promised an eventual turnaround when the COVID-19 pandemic’s affect on the on line casino business wanes.
The tribal firm’s internet revenues within the three months that ended Dec. 31 — the primary quarter of MGE’s 2021 fiscal yr — fell to $230.8 million from $399.1 million in the identical interval the earlier yr, a decline of 42.2%. Mohegan Solar, MGE’s flagship on line casino, posted internet revenues of $165.9 million in the quarter, down from $243.3 million, a decline of $31.8%.
Mohegan Solar’s gaming revenues through the quarter have been down by 22%. Nongaming revenues have been off by 51%.
Rising COVID-19 an infection charges that hampered nearly all U.S. casinos through the quarter saved MGE’s casinos in Niagara Falls, Ontario, Canada, closed and prompted the short-term shutdown of Mohegan Solar Pocono in Wilkes-Barre, Pa., in response to Mario Kontomerkos, MGE’s president and chief government officer.
Close to the top of the quarter, enterprise started to stabilize at most MGE properties and improved throughout January and into February, stated Kontomerkos, who joined different MGE officers on a convention name with traders and gaming business analysts.
“We consider very strongly that we’re arrange for a sturdy restoration,” he stated.
Federal stimulus funding, falling COVID-19 an infection charges and the rollout of the vaccine are anticipated to gas a rally within the on line casino enterprise, Kontomerkos stated. Analysis suggests “extra, unexpended” financial savings within the U.S. might whole as a lot as $1.4 trillion.
The pandemic has prompted MGE to make everlasting modifications in its strategy, Kontomerkos stated, leading to decrease expenditures on labor, advertising and promotion. In the course of the quarter, Mohegan Solar’s workforce was minimize by the equal of 1,823 full-time workers in comparison with the earlier yr, a discount of 36.9%.
“Subsequent to the top of the quarter, MGE efficiently accomplished a refinancing, which prolonged our nearest maturities, elevated our monetary flexibility, and supplied us with ample liquidity as we transfer ahead,” Kontomerkos stated. “We stay fairly constructive that our enterprise has been optimized to profit from what we foresee to be important pent-up demand for leisure consumption within the months forward.”