It’s been a momentous fiscal year for Mohegan Gaming & Entertainment, as it taps into record consolidated net revenue, reaching a towering $1.67 billion for the year 2023. This financial achievement was bolstered by an impressive quarterly net revenue of $444.3 million. Riding on the back of such strong performance, the company also announced an adjusted EBITDA of $399.9 million for the full year, which stands as the second highest since its inception 27 years ago, just marginally lower than the previous record of $403.9 million set in 2022.
Raymond Pineault, the CEO of Mohegan, expressed his satisfaction with the company’s performance, citing the remarkable adjusted EBITDA figure as a testament to Mohegan’s robust operations. “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,” he remarked. Pineault also highlighted the positive developments within their gaming segment, and he is optimistic about the benefits of diversification efforts, particularly with the advent of the new Mohegan INSPIRE property that recently saw its soft opening on November 30th.
Earlier in the year, in a conversation with iGB, Pineault shared his vision for Mohegan’s omnichannel success, emphasizing the integrated approach to their gaming operations. Such perspectives are now bearing fruit as seen by the quarter-by-quarter financial reports.
For the third quarter ended September 30, Mohegan Sun, a flagship property, reported a net revenue of $224.2 million, which represented a 5.2% decline. This was attributed to a decrease in gaming volumes and table hold. Mohegan Niagara, on the other hand, showed a positive trend with a 4.9% increase in net revenue amounting to $88.6 million during the fourth quarter. Meanwhile, Mohegan Pennsylvania saw a slight dip of 2.9%, generating $62.7 million. Mohegan Digital, a burgeoning segment, raked in a significant $50.0 million, marking an increase of $44.2 million, which can be partly attributed to an accounting adjustment. This adjustment reflected an additional $32 million in net revenues and expenses in accordance with Connecticut’s online casino and sports wagering payment regulations to the state.
Growth was also registered in the management, development, and other segments, with net revenues rising to a bountiful $34.4 million—an increase of 116.6%. However, the net revenue listed under “all other” took a hit, decreasing by 41.7% to $3.8 million.
A majority of the company’s revenue was derived from gaming, amounting to $297.8 million for the quarter. The rest was split among food and beverage, hotel, retail, entertainment, and other categories. The total operating costs and expenses for the quarter climbed by 13.3% to reach $396.2 million, resulting in an operating income of $48.0 million.
The operating costs were driven primarily by gaming which attached a price tag of $174.8 million. Advertising, general, and administrative costs also formed a significant part of the expenses, totaling $79.2 million, while food and beverage costs were not far behind, tallying up to $32.7 million.
The financial statements showed an “other expense” totaling $60.6 million, which mainly consisted of an interest expense of $54.6 million. Consequently, the pre-tax income took a plunge into a loss of $12.5 million. After accounting for an income tax provision of $6.3 million, the quarter concluded with a net loss of $18.8 million. This figure starkly contrasts with the net income of $29.6 million from the previous year, underscoring the volatile nature of the business landscape.
Despite these fluctuations, Mohegan’s overall fiscal profile appears strong and resilient. With its diversified and robust revenue streams, Mohegan Gaming & Entertainment seems well poised to navigate the future and cement its position in the gaming and entertainment industry.
