The Mohegan Tribal Gaming Authority announced this morning a net income of $23.7 million in the first quarter, ended Dec. 31, 2007, a 37.5 percent decrease from $37.9 million at the same time in 2006.
The MTGA, which is the operator of the Mohegan Sun casino and Pocono Downs harness racing track in Pennsylvania, reported a 19 percent drop in earnings to $76.6 million in Q1 2007 from $94.7 million in Q1 2006, a drop of $18.1 million. In a statement, MTGA officials attributed the lower earnings to an increase in corporate-related expenses.
At Mohegan Sun, earnings fell by 18.3 percent and was due mainly to a lower slot handle and slot revenues. The casino’s earnings also were hurt by a 23.7 percent bump in utility costs, a 12 percent increase in medical costs and a 8.1 percent jump in salary and wage costs. Those additional costs were driven by the need to staff additional table games and “market driven compensation adjustments,” according to MTGA officials.
The harness racing track, which has only had slot machines since November 2006, saw its net revenues jump by $18.4 million in the last quarter. MTGA president and CEO Robert Soper said he was “very pleased” with those results and that an expansion project at Pocono Downs is “progressing as planned.”
