Sunday, January 02, 2011

Mohegan's Net Income Down to $9.7 Million Annual

Remember when people thought bringing casinos into Massachusetts was a good idea? Well, the company with well over a billion in debt is absolutely tanking... and this is the Connecticut 'model' of success, compared to Foxwoods.
The Mohegans listed declining revenue — net income dropped from $149 million in fiscal year 2008 to $9.7 million in fiscal year 2010 — and increasing competition from other gaming operations as key areas of concern.
Remember, this is net income, not net profits. If Mohegan's only bringing in $9.7 million annually, there's no where close to any profits.


Middleboro Remembers said...

For more than 2 years, people who travel to the CT casinos on business have been saying that the parking lots are empty.

Each of the casinos has removed slot machines [according to the American Gaming Assoc., not that any of us would consider counting them].

If Moody's downgraded Mohegan Sun to 'highly speculative,' it would seem to make a "Palmer Slot Barn" laughable to capital markets.

People are saving more money and doing 'family things' like buying Christmas presents or just trying to survive. They're just not feeding reverse ATM machines like they used to.

Professor Goodman made a point in his book about the market eventually running out of potential "Gambling Addicts."

Is that what's happening?

Anonymous said...

Isn't net income the same as net profits?
dave whelam

Ryan said...

Economics isn't my profession, but putting on my macroeconomics hat, income refers to the money coming in... profit refers to the money coming in after costs are taken into consideration. It's been a while since I've taken macro, but I did get an A in it :p

If I'm wrong, I'm wrong, but I don't think I am in this case. Foxwoods has defaulted on several of its loans, and Mohegan is right behind it.

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