Mohegan's tribal operator posts $18.5M 4Q profits, despite sinking revenue

Photo | Mohegan Sun Mohegan Sun's Sky and Earth Tower at its Connecticut casino.

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By Sean Teehan

Mohegan Gaming & Entertainment posted $18.5 million in profits for its final fiscal year of 2020 even as revenues sank, mostly owing to growth in management fees at one of its casinos in Washington state.

MGE, the tribal operator of Mohegan Sun in Uncasville, and seven other casinos across the country, on Tuesday announced its $18.5 million in profits in the three months ending Sept. 30, a sharp increase from the same period last year, when it posted a $20.6 million loss.

At the same time, fourth-quarter revenues were $294 million, a 29% decrease from the year-ago period, when MGE took in $414 million.

"Net revenues increased due to continued growth in management fees from [ilani Casino Resort in Clark County, Washington], ... despite several disturbances during the quarter in the nearby Portland, Oregon feeder market and COVID-related impacts," MGE said in a statement.

In the fourth quarter, revenues at the flagship Mohegan Sun casino in Uncasville fell to $212 million, 15% less than 2019's fourth quarter, when the casino brought in $250 million. Revenues at Mohegan Sun Pocono fell 12% from about $64 million to about $56 million. MGE Niagara Resorts' revenues dipped 86% from $91.2 million in 2019's last fiscal quarter to $12.4 in 2020's fourth quarter.

"The MGE team and our property portfolio performed remarkably well during the fiscal fourth quarter, despite re-opening the majority of our properties in the summer with COVID-related reductions in capacity and entertainment offerings," MGE CEO Mario Kontomerkos said.