In a notable turn of events within the gaming industry, the Mohegan Tribal Gaming Authority declared a landmark increase in net revenue, coinciding with the launch of its South Korean venture, Mohegan Inspire. Despite the uptick in revenue, earnings took a dip during this transformative quarter for the group.
The latest financial reports hold that the Mohegan Tribal Gaming Authority, responsible for some of the industry’s most recognized entertainment and resort operations, amassed net revenues amounting to $461.7 million for the quarter ending March 31, 2024. This represents a 13.8% ascent from the previous year, marking a significant milestone.
This leap in revenue is attributed mainly to the group’s international endeavors, with a notable contribution from the newly opened Mohegan Inspire. Located on Yeongjong Island, South Korea, the $1.6 billion resort began operations on March 5 and significantly bolstered international net revenue by 52.8% year-on-year to $108.1 million.
Closer to home, in the United States, the figures tell a nuanced story. Domestic operations experienced a relatively flat growth, achieving $300.4 million in revenue, which is an incremental rise of 1.0% compared to the last year. Meanwhile, Mohegan Digital saw an appreciable surge of over 70%, although it contributes a smaller slice of the revenue pie, totaling $38.8 million.
Despite these encouraging numbers, Mohegan faced a challenging financial climate, resulting in a recorded net loss of $44.5 million. This loss is partly due to operational costs, which saw a steep 25.7% increase totaling $430.5 million. The operating costs rose significantly in light of the opening expenses of Mohegan Inspire and a $5.0 million non-controlling interest adjustment related to Niagara Resorts. When setting aside the adjusted Niagara figure, the comparison with previous periods appears more consistent.
Moreover, the group’s gaming segment experienced a growth of 7.0% to $305.4 million. However, Adjusted EBITDA saw a downturn of 17.8% from $102.1 million in Q1 of 2023 to $84.0 million in the same quarter of 2024. The Domestic segment remained static, while the International operations recorded a negative Adjusted EBITDA of $16.6 million.
Moving the spotlight over to Century Casinos, the beginning of 2024 can be marked as “challenging,” owing to multiple disruptions, including construction disturbances and licensing issues that led to the closure of three casinos in Poland. These Polish properties suffered a 15% decline to $21.6 million due to temporary shutdowns. Nonetheless, their U.S. revenue climbed by 45% to $96.0 million and Canadian operations also saw considerable growth.
Despite revenue growth reaching $136.0 million, marking a 25% increase year-on-year, operational earnings painted a less optimistic picture, showing a 55% decline to $8.3 million. Century Casinos remains engaged in building a new casino and a 38-room hotel in Caruthersville, Missouri. Financial expenditures like a $3.4 million one-time principal payment on debt, taxes from past property sales and investments in property and equipment have impacted the company’s cash balance.
Meanwhile, optimism prevails within Century Casinos, as its CEOs, Erwin Haitzmann and Peter Hoetzinger, predict a brighter future ahead, expecting capital project expenses to wrap up and operations to stabilize by 2025 with no further construction or licensing interruptions.
The shining beacon in the market is SJM Holdings, focused on Macau, which celebrated substantial growth as its properties, Grand Lisboa Palace and Grand Lisboa, lured back clients. Evidently, the gamble paid off with net revenue skyrocketing by 73.0% year-on-year and occupancy rates flying high. Macau’s overall gambling revenue has shown robust numbers, matching pre-pandemic peaks, signaling a resurgent appetite for gaming.
Conclusively, as the gaming industry traverses a complex landscape, marked by impressive expansions and tough financial outcomes, entities like Mohegan Tribal Gaming Authority and Century Casinos remain steadfast. All the while, the prosperity of SJM Holdings underlies Macau’s remarkable recovery, reinforcing its status as a thriving gaming hub.
