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February 11, 2021

Mohegan Gaming’s FY 1Q profits decline sharply amid pandemic

Photo | Mohegan Sun Mohegan Sun's campus in the Uncasville section of Montville.
By Liese Klein

The tribal operator of Mohegan Sun Thursday reported grim results for the first quarter of its fiscal year, with profits dropping by 42% due to the pandemic’s impact on attendance at its resorts.

Net income for Mohegan Gaming & Entertainment (MGE) sank in the October-December period to $230.8 million from $399.1 million in the same quarter the prior year. 

Flagship Mohegan Sun, located in the Uncasville section of Montville, saw profits plunge by 32%, to $165.9 million from $243.3 million in the same period the year before.

MGE blamed the results on “a temporary sequential softening of gaming demand as COVID infection rates increased throughout our operating regions, adding to the negative impact of ongoing COVID-related closures and reductions in capacity.”

Income from operations company-wide plunged 75.6% to $10.6 million compared to $43.4 million in the prior year period.

Northeast locations were particularly hard-hit, with Mohegan Sun Pocono closing temporarily for 23 days in December and early January, while MGE Niagara Resorts remained closed for the entire quarter.  

Despite the numbers, MGE CEO Mario Kontomerkos said he remained optimistic as gamblers returned in the New Year. 

“Performance in the fiscal first quarter was challenging as COVID cases climbed substantially in virtually all of our markets, but the pressure we observed on our revenues and profitability largely began to reverse itself in late December with positive momentum observed throughout January, most notably at Mohegan Sun,” Kontomerkos said. “As we move through the early part of 2021, we have an eye on a broader industry recovery and I am confident in MGE’s position to benefit from it.”
 

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