Wednesday, October 28, 2009

Mohegan Gaming Authority Makes Presentation Today

Feather News

The Mohegan Tribal Gaming Authority is to make a presentation today to the Wells Fargo Securities 2009 Consumer Growth Conference at the New York Palace Hotel.

MTGA is to begin the presentation by pointing out that the Mohegan Sun has 53 percent of the Connecticut market share compared to Foxwoods' 47 percent market share despite the Sun having given away $28 million in free slot play while Foxwoods gave out twice that amount in free slot play.

Out of a database of 4 million rated customers, 37 percent are from Connecticut, 23 percent come from Massachusetts, another 23 percent from New York, 4 percent from Rhode Island and 13 percent from other parts.

Pocono Downs has a database of 400,000 rated customers with 77 percent from Pennsylvania, 11 percent are from New York, 5 percent from New Jersey and 7 percent from other parts (including 1 percent from Connecticut).

MTGA is projecting a decline of about 8 percent in net revenues for fiscal year 2010, which are the twelve months of October 1, 2009 through September 30, 2010, from $1.57 billion to $1.46 billion. If revenues do decline by 8 percent, then profits could likely decline much more.

Forecasted maintenance capital expenditures are estimated at $21 million this fiscal year (2010), which is about less than half of the $45 million average spent for fiscal years 2005 - 2008.

One chart shows the breakdown of due dates that MTGA must repay debt principle. Of special note is that $760 million will be due in 2012, or about half of MTGA's $1.6 billion in total debt. The balance of the debt is to be paid between 2013 through 2017. In 2013 $250 million is due, in 2014 $225 million is due, in 2015 $150 million is due while the last remaining piece - the $200 million that was borrowed in Ocotober - comes due in 2017.

Leo Chupaska, CFO of MTGA and Peter Roberti, VP Finance of MTGA, are to make the presentation.