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Mohegan Tribal Gaming Authority recently announced its fourth quarter fiscal 2023 operating results, which ended on Sept. 30, 2023. The operator attributed its success rate to its operations in the digital gaming segment.
Highlights of the Q4 report
- Generated net revenue of $444,319 million for Mohegan’s operating results.
- Mohegan Digital reached $50,040 million in revenue.
- Mohegan Sun saw a decline in net revenue, resulting in $224,234 million.
- Mohegan Pennsylvania experienced a decrease of $1.9 million.
- Niagara Resorts saw a $4.1 million increase in net revenues.
Mohegan operating results
Unlike Mohegan’s 2023 third-quarter earnings, which witnessed a decline in overall net revenue, the fourth quarter racked up 444,319 million in net revenue, a 7.6% increase compared to the fourth quarter of 2022.
Adjusted EBITDA stood at $88,049, which saw a decrease of $11.7 million when compared to last year’s figures, which stood at $99,759 million. The decrease was impacted by table hold in Mohegan Sun and the non-controlling interest impact of Niagara Resorts debenture conversion and related transactions.
Mohegan Sun revenue results
Net revenues for Mohegan Sun experienced a decline of $12.5 million in comparison to the corresponding period in the previous year. That decline was primarily due to lower gaming volumes and table holding throughout the quarter.
Despite this decrease in gaming revenues, the quarter saw robust non-gaming growth, fueled by increased revenues in the food, beverage, and entertainment sectors. This growth helped partially offset the overall decline in gaming revenues.
The Adjusted EBITDA for the period amounted to $56.3 million, reflecting a 13.7% unfavorable variance compared to the same period in the prior year.
Mohegan Pennsylvania experienced a decline in generated revenue
Mohegan Pennysylvania saw a decline of $1.9 million in net revenue compared to Q4 2022, primarily attributed to reduced gaming activities. However, this downturn was partially mitigated by robust performances in food, beverage, and hotel revenues.
The Adjusted EBITDA for the period stood at $13.8 million, reflecting a favorable variance of 4.2% compared to the same period in the prior year.
OLG Stage drove Niagara Resorts’ revenue increase
Niagara Resorts’ net revenues grew $4.1 million compared to Q4 2022, primarily attributed to the ongoing success and increasing popularity of the OLG Stage entertainment venue. The venue commenced operations in October 2022.
However, the gaming revenue segment experienced a decline of $7.2 million during the same period, largely influenced by reduced volumes.
Despite the positive trajectory in net revenues, there was a less favorable performance in Adjusted EBITDA, which amounted to $14.1 million, with an associated Adjusted EBITDA margin of 15.9%. This reflects a decrease of 21.3% and 527 basis points, respectively, indicating a less robust financial performance compared to the prior year period.
Mohegan Digital saw notable net revenue outcome
The boost in net revenues of $18.5 million primarily stemmed from the $18.3 million adjustment in inter-company revenue. However, this increase was fully offset by a corresponding rise in inter-company expenses related to the accounting treatment for entertainment items at Niagara Resorts.
The adjusted EBITDA of $4.1 million reflected an unfavorable comparison to the last year of $6.3 million. This difference was mainly due to a loss of foreign currency and heightened costs in labor, professional services, and legal areas.
The net income for the period demonstrated an unfavorable variance of $31.7 million compared to the previous year. This was primarily due to the impact of pre-opening costs associated with Mohegan INSPIRE.
Raymond Pineault, CEO of Mohegan anticipates that INSPIRE, the recently launched resort on Nov. 30, will soon begin generating sufficient revenue to enhance its financial performance, considering the significant contributions made by the digital segment. Pineault stated in a Mohegan press release:
“Our Adjusted EBITDA for fiscal 2023 of $399.9 million was the second highest in our 27-year history, compared with Adjusted EBITDA for fiscal 2022 of $403.9 million, which was the highest to date. We continue to see growth in our Digital gaming segment and with the recent soft opening of Mohegan INSPIRE on November 30th, our diversification efforts will further enable Mohegan to achieve strong results.”
