Mohegan Gaming and Entertainment, also known as Mohegan Sun, saw a slight dip in revenue during the third financial quarter, which ended in June. The company’s EBITDA (earnings before interest, taxes, depreciation and amortization) dropped by 1.2% year-on-year, coming in at $88.2 million. It blames the drop on smaller group revenue and an increase in slot machine taxes in Pennsylvania. It also said that its revenue had fallen by 1.5% to $344.9 million.
The Connecticut-based company indicated that its gaming revenue fell by only half a percent to $295.4 million while its gross slot machine revenue dropped by 0.9% to $203.6 million. Revenue from table games also fell, reported at $91.6 million for a decline of 3.8% year-on-year. Non-gaming revenue saw the biggest drop, falling by 10.2% to $74.1 million.
The company blamed the net revenue decline on a reduction of non-gaming revenue and increased spending on promotions for its Pennsylvania-based Mohegan Sun Pocono. Third-quarter operating expenses were consistent to the previous year’s numbers.
According to the company’s CEO, Mario Kontomerkos, “Overall fiscal third-quarter results were generally in line with prior-year performance, driven by effective operational cost containment initiatives leading to an impressive margin performance at Mohegan Sun in Connecticut.