The Mohegan Tribal Gaming Authority announced an increase in its second-quarter revenue on Monday, primarily fueled by exceptional results from its digital gaming sector. However, the net income saw a significant decline compared to the same period last year.
For the quarter ending March 31, total net revenues rose by 2.4%, reaching $429 million, up from $418.8 million the previous year. Operational income also saw a modest increase of 1.3%, totaling $60.5 million.
Adjusted EBITDA experienced a rise of 1.8%, amounting to $85.4 million, while Adjusted EBITDAR increased by 4.0%. Conversely, net income plummeted by 69.9%, dropping to $14.1 million from $46.9 million in the same quarter last year.
A statement from the tribe indicated that the results were significantly influenced by Mohegan Digital's record performance for the quarter. Nonetheless, these gains were somewhat counterbalanced by unfavorable table hold and reduced table volumes at Mohegan Sun in Connecticut.
Mohegan Digital achieved record highs in quarterly net revenues, Adjusted EBITDA, and average revenue per monthly active user. The digital segment's net revenues surged by 40.2%, reaching $79.3 million compared to $56.56 million a year prior, while Adjusted EBITDA soared by 47.9% to $39.7 million. The average revenue per monthly active user for Mohegan Digital Connecticut hit an unprecedented $470 during this quarter.
In addition, Mohegan Sun captured over 60% of Connecticut's slot market share in March, marking its highest monthly share in five years. However, the previously mentioned unfavorable table hold and lower table volumes at the resort mitigated this growth.
International Resorts reported a slight decline in revenue of 0.9%, totaling $66.5 million, while Adjusted EBITDA fell by 33.1% to $1.8 million due to decreased revenue and heightened contractual lease obligations. Figures from prior periods have been adjusted to exclude operations related to Inspire Integrated Resort Co., Ltd., MGE Korea Limited, and specific subsidiaries from continuing operations.
In addition to gaming activities, the company finalized an agreement to sell the Connecticut Sun WNBA team for $300 million during this period.
At the end of the quarter, Mohegan had $126.9 million in cash and a borrowing capacity of $228.5 million.