July 29, 2014

Mohegans' 3Q profits fall on gambling decline

Submitted photo
Submitted photo
Mohegan Sun in Montville.

The Mohegan Tribal Gaming Authority, which operates Mohegan Sun casinos in Connecticut and Pennsylvania, said its third-quarter net income fell nearly 38 percent — a decline its CEO blamed on a lack of economic confidence and a decline in bettors' discretionary dollars.

The authority reported profits of $13.9 million, down from $22.3 million in the same quarter last year.

Net revenue fell nearly $18 million, to $326.3 million. Gaming revenue — the MTGA's largest business — was down $19.8 million, but increases in hotel and food revenue added approximately $2 million, and the authority also cut expenses by $2.7 million.

Mohegan Sun in Montville posted net income of $47.1 million for the quarter, down 18 percent from $57.4 million a year ago.

CEO Mitchell Grossinger Etess said in a statement that the MTGA will continue to pursue efficiencies at its properties, and noted that it is pursuing gaming licenses in Massachusetts, Philadelphia and New York.

The tribe has also been branching out into non-gaming businesses in an attempt to diversify and grow its revenue stream.

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