The Mohegan Tribal Gaming Authority reported today that the combined profits for the Mohegan Sun and Pocono Downs fell to about $5 million from April through June, an 89 percent decline when compared to the same three months last year when the profit was about $46 million.
The casinos in Connecticut have cyclical pattterns, with the summer months generating the highest revenues.
After deducting the full 5 percent MTGA pays of its Mohegan Sun revenues to Trading Cove Associates, that profit actually becomes a loss. The full amount of the TCA fees is not recorded due to the accounting treatment of the "egregious" contract, which should net TCA about $1 billion in profits by the time the contract ends in 2014. The amount not reflected in the three-month income statement is at least $10 million in additional TCA fees.
This adjusted loss also does not take into account casino distributions to the tribal government, which averages about $20 million every three months.
Once both of these transactions are included (the full TCA 5% fee and the distributions to the tribal government), the adjusted loss (yes, loss) is at least $25 million for the three-month period of April through June.
A detailed analysis of the results will be written upon MTGA's filing of the the balance sheet and statement of cash flows, expected in about two weeks.
MTGA's press release on its earnings can be found in the "Googled" article section on the top-right hand side of this site. Keep in mind that inaccurate statements may appear in MTGA's press release, such as the statement that the Pocono Downs expansion was completed under budget. Upon release of the full set of quarterly financial statements in mid-August, a link to the SEC report will be added to the right-hand column of this site.
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