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Mohegan gaming authority reports quarterly decline in earnings

By Brian Hallenbeck

Publication: theday.com

Published January 29. 2013 10:00AM   Updated January 29. 2013 10:20AM

Mohegan —  The Mohegan Tribal Gaming Authority attributes declining revenues at Mohegan Sun in Uncasville and Mohegan Sun at Pocono Downs, a racetrack casino in Wilkes-Barre, Pa., to “a weak regional economic environment,” according to the authority’s quarterly report of its finances.

Mohegan officials are discussing the results with investors and gaming industry analysts in a conference call today.

The region’s economy was hampered during the quarter that ended Dec. 31, 2012 by “the uncertainties surrounding the national presidential election and the ‘fiscal cliff’ negotiations in Congress, and in northeastern Pennsylvania, local governmental proposals to significantly increase property taxes,” the authority said in a press release.

“Results at Mohegan Sun were negatively impacted by additional gaming capacity in the Northeast gaming market and difficult year-over-year comparisons, while results at Mohegan Sun at Pocono Downs were hampered by construction disruptions associated with our hotel and convention center expansion at the facility.”

The authority reported net revenues of $324.8 million during the quarter, a 7.7% decrease over the same quarter in fiscal 2012. Gaming revenues at the authority’s two properties were down 8.8 percent while nongaming revenues were down 3.5 percent.

Adjusted EBITDA — earnings before interest, taxes, depreciation and amortization — was down 2.4 percent to $73.2 million while net income, or profit, of $9.1 million decreased 62.1 percent, a result of higher interest expenses driven by the authority’s March 2012 refinancing of long-term debt and a decline in income from operations, the authority said.

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