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Mohegan Sun reports results

8 May 2008

CONNECTICUT – As reported by the Connecticut Day: "The Mohegan Sun Gaming Authority experienced a double-digit drop in earnings during the first three months of 2008.

"Coupled with the slowing economy and declining revenues, Mitchell Etess, the authority's president and CEO, said that Mohegan Sun staffing levels are being adjusted through attrition to become more efficient.

"…The authority saw a decrease of $10.5 million from $96.8 million for the second quarter of fiscal year 2007 to $86.3 million in the second quarter of fiscal year 2008 in earnings before interest, income taxes and other expenses related to financing, a commonly used way of measuring performance in the casino and hospitality industry.

"…Earnings before interest, income taxes and other expenses related to financing at Mohegan Sun, dropped by $10 million in the second quarter. The decrease was attributed to lower slot revenues, higher casino marketing expenditures including the cost of producing and releasing three new television commercials. The drop in revenue was also blamed on a 15.2 percent increase in medical benefit costs and a 6.7 percent increase in salary and wage costs, due to market-driven compensation adjustments, according to a release issued by the authority.

"Gross slot revenues at Mohegan Sun for the second quarter dropped by $5.8 million or 2.6 percent as compared to the 2007's second quarter. The authority attributed this to increased competition in the region, particularly in Yonkers, N.Y., and Lincoln, R.I.

"…While overall earnings were down, Mohegan Sun did experience some gains in the second quarter.

"Table game revenues increased by $6.2 million or 6.4 percent for the second quarter as compared to the same period in 2007. That growth, according to the authority, is attributed in part to the success of the August 2007 opening of Sunrise Square, its 46-table Asian gaming room…"

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