MOHEGAN ANNOUNCES FIRST QUARTER FISCAL 2024 OPERATING RESULTS

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UNCASVILLE, Conn., Feb. 8, 2024 /PRNewswire/ — Mohegan Tribal Gaming Authority (“Mohegan,” “we” or “our”) today announced operating results for its first fiscal quarter ended December 31, 2023.

“We are thrilled that Mohegan INSPIRE has received its five-star hotel rating in January and opened the casino on February 3rd,” said Raymond Pineault, Chief Executive Officer of Mohegan. “The five-star rating is a testament to our pursuit for excellence and commitment to providing world-class experiences. We are looking forward to more amenities coming online in the ensuing months.”

Mohegan Operating Results

Three Months Ended

Variance

($ in thousands, unaudited)

December 31, 2023

December 31, 2022

$

%

Net revenues

$                    425,232

$                    406,621

$               18,611

4.6 %

Income from operations

31,970

70,229

(38,259)

(54.5) %

Net income (loss) attributable to Mohegan

(97,019)

807

(97,826)

N.M.

Adjusted EBITDA1

79,002

101,055

(22,053)

(21.8) %

“Quarterly net revenues increased $18.6 million compared with the prior-year period, primarily due to continued growth in Mohegan Digital and non-gaming revenues from Mohegan INSPIRE,” said Carol Anderson, Chief Financial Officer of Mohegan. “However our consolidated Adjusted EBITDA of  $79.0 million decreased $22.1 million compared with the prior-year period due to a number of factors, primarily operating costs related to the opening of Mohegan INSPIRE, non-controlling interest adjustments at Niagara Resorts, and low table hold at a few of our properties.”

Our Adjusted EBITDA margin of 18.6% was 627 basis points unfavorable compared with the prior-year period.

_____________________________

1 Refer to the Reconciliation of Non-US GAAP Financial Measures for a discussion and reconciliation of Adjusted EBITDA.

 

Mohegan Sun

Three Months Ended

Variance

($ in thousands, unaudited)

December 31, 2023

December 31, 2022

$

%

Net revenues

$                    228,410

$                    239,403

$             (10,993)

(4.6) %

Income from operations

41,514

51,339

(9,825)

(19.1) %

Net income attributable to Mohegan Sun

41,466

51,275

(9,809)

(19.1) %

Adjusted EBITDA

58,066

67,810

(9,744)

(14.4) %

Net revenues decreased $11.0 million compared with the prior-year period primarily due to lower gaming volumes and table hold for the quarter. Non-gaming growth was primarily driven by food and tenant revenues, but partially offset by lower hotel and beverage revenues. Adjusted EBITDA of $58.1 million  and Adjusted EBITDA margin of 25.4% were 14.4% and 290 basis points unfavorable, respectively compared with the prior-year period. Adjusting for normalized table hold, Adjusted EBITDA would have been $61.0 million and Adjusted EBITDA margin would have been 26.4%, down $3.4 million and 93 basis points, respectively, from the prior-year period.

Mohegan Pennsylvania

Three Months Ended

Variance

($ in thousands, unaudited)

December 31, 2023

December 31, 2022

$

%

Net revenues

$                      59,045

$                      59,778

$                  (733)

(1.2) %

Income from operations

7,233

9,208

(1,975)

(21.4) %

Net income attributable to Mohegan
Pennsylvania

7,254

9,208

(1,954)

(21.2) %

Adjusted EBITDA

10,351

12,126

(1,775)

(14.6) %

Net revenues decreased $0.7 million compared with the prior-year period primarily due to lower gaming volumes, which were partially offset by strong food, beverage and hotel revenues. Adjusted EBITDA of $10.4 million was 14.6% unfavorable compared with the prior-year period. The Adjusted EBITDA margin of 17.5% was 276 basis points unfavorable compared with the prior-year period.

Niagara Resorts

Three Months Ended

Variance

($ in thousands, unaudited)

December 31, 2023

December 31, 2022

$

%

Net revenues

$                      74,155

$                      74,020

$                    135

0.2 %

Income from operations

3,318

7,966

(4,648)

(58.3) %

Net income attributable to Niagara
Resorts

129

3,746

(3,617)

(96.6) %

Adjusted EBITDA

4,879

11,914

(7,035)

(59.0) %

Adjusted EBITDA before NCI

8,315

11,914

(3,599)

(30.2) %

Net revenues increased $0.1 million compared with the prior-year period driven by strong food, beverage and entertainment revenues. During the same period, the gaming revenue component decreased $5.8 million due to lower volumes and table hold in the quarter. Adjusted EBITDA of $4.9 million and Adjusted EBITDA margin of 6.6%, were unfavorable 59.0% and 952 basis points respectively.

On July 31, 2023, our partner exercised its option to convert its debenture to a 40% non-controlling equity ownership in Niagara Resorts, which impacted Adjusted EBITDA and Adjusted EBITDA margin in the current period. Before the effect of the non-controlling interest and normalized for table hold, Adjusted EBITDA would have been $11.0 million with an Adjusted EBITDA margin of 14.0%, which would have been $0.7 million and 175 bps unfavorable  compared with the prior-year period. 

Mohegan Digital

Three Months Ended

Variance

($ in thousands, unaudited)

December 31, 2023

December 31, 2022

$

%

Net revenues

$                      36,187

$                      11,164

$               25,023

224.1 %

Income from operations

16,417

7,113

9,304

130.8 %

Net income attributable to Mohegan
Digital

16,509

7,338

9,171

125.0 %

Adjusted EBITDA

16,490

7,331

9,159

124.9 %

Net revenues increased $25.0 million compared with the prior-year period, partially due to an accounting adjustment which increased both net revenues and expenses by $14.0 million due to how Connecticut requires that online casino and sports wagering payments be made to the state. Adjusted EBITDA of $16.5 million was $9.2 million favorable compared with the prior-year period, and Mohegan Digital continues to focus on growth and profitability.

Management, development and other

Three Months Ended

Variance

($ in thousands, unaudited)

December 31, 2023

December 31, 2022

$

%

Net revenues

$                      24,280

$                      14,845

$                 9,435

63.6 %

Income (loss) from operations

(23,621)

5,124

Full story available on Benzinga.com


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