The Mohegan Tribal Gaming Authority has experienced a significant 5% surge in net revenue, reaching a remarkable $425.2 million for the fiscal first quarter ending December 31st. 🌟
This remarkable growth can be credited to the expansion of Mohegan Digital and the influx of non-gaming income from the newly unveiled Mohegan INSPIRE. Despite a 5% dip in earnings at Mohegan Sun, their Connecticut-based flagship casino, down to $228.4 million, Mohegan’s overall financial health remains robust. The decline was attributed to reduced gaming activities and table hold during this period.
Mohegan Pennsylvania witnessed a slight 1% decrease in revenue, settling at $59.0 million. This was partly balanced by strong performance in their food, beverage, and hotel sectors. On the other hand, Niagara Resorts showed a slight yearly increase to $74.2 million, buoyed by their food, beverage, and entertainment offerings, which compensated for the decreased gaming revenue.
A standout performer, Mohegan Digital, saw a staggering 224% revenue increase to $36.2 million. This jump was partly due to an accounting change, which boosted both net revenue and expenses by $14.0 million, in line with Connecticut’s online casino and sports wagering financial regulations.
Revenue from management, development, and other sources soared by 64% to $24.3 million, primarily fueled by the opening of non-gaming amenities at Mohegan INSPIRE in South Korea. However, all other revenue streams experienced a 12% decline, dropping to $7.4 million.
Mohegan CEO Raymond Pineault expressed immense pride in Mohegan INSPIRE’s recent achievements, including a prestigious five-star hotel rating and the launch of its casino in early February. Pineault highlighted these milestones as a reflection of Mohegan’s commitment to excellence and delivering top-tier experiences.
The fiscal year 2023/24 first-quarter net revenue comparison showcased diverse performance across various sectors, with overall revenue climbing to $425.2 million, a 4.6% increase from the previous year. However, the quarter witnessed a 22% reduction in adjusted EBITDA, totaling $79.0 million, despite Mohegan Digital’s EBITDA more than doubling.
Mohegan’s CFO, Carol Anderson, noted the net revenue boost of $18.6 million compared to the previous year, primarily driven by Mohegan Digital and non-gaming revenues from Mohegan INSPIRE. Despite this, she acknowledged a decrease in consolidated adjusted EBITDA, attributing it to several factors, including operating costs linked to Mohegan INSPIRE’s launch, adjustments in Niagara Resorts, and low table hold at certain properties.
Across all business segments, gaming revenue rose by 2% to $285.7 million. Additionally, food and beverage revenue increased by 14% to $43.7 million, hotel revenue by 7% to $31.6 million, and retail, entertainment, and other revenue by 11% to $64.3 million.
Nevertheless, total operating costs and expenses escalated by 17% to $393.3 million. This rise included an 11% increase in gaming expenses to $159.1 million, leading to a 54% decline in income from operations to $32.0 million. After accounting for higher other expenses of $128.8 million, Mohegan reported a net loss for the quarter of $97.0 million, compared to a net income of $0.8 million in the previous year.
As of December 31st, Mohegan maintained cash and cash equivalents of $226.4 million, slightly up from $217.3 million at the end of September 2023.
