U.S. casino operator Mohegan Gaming & Entertainment on Thursday reported a year-on-year decrease in net revenue and adjusted EBITDA for the first quarter ended Dec. 31, 2018, according to the company’s latest results filing.
“While consolidated first quarter revenues and Adjusted EBITDA were modestly below prior year results, we remain encouraged, as overall gaming volumes at our flagship property, Mohegan Sun, were better than expected following the first full quarter of increased competition in the Northeast gaming market,” said Mario Kontomerkos, president & CEO of MGE.
Net revenue reached $319.5 million, down 3.6 percent year-on-year from the prior year period. MGE said this was driven by slightly lower gaming revenues at Mohegan Sun and Mohegan Sun Pocono, and continued increases in promotional activities in the Mohegan Sun Pocono gaming market.
These factors, combined with higher slot taxes assessed by the Commonwealth of Pennsylvania and increased healthcare costs, all contributed to the year-over-year decline in Adjusted EBITDA, which reached $71.9 million, down 5.4 percent year-on-year.
The company currently operates properties in Connecticut, New Jersey, Washington, Pennsylvania, Louisiana, Niagra Falls in Canada, and is building an IR in South Korea set to open in 2022.
Mohegan is also vying for a license in Japan, making its first strides in Hokkaido, Japan’s northernmost prefecture in January.