The Mohegan Tribal Gaming Authority reported its highest quarterly net revenue in history at $461.7 million for the second fiscal quarter ended March 31, 2024. This figure marked a 13.8% growth year-over-year.
The growth was partly attributed to the newly opened Mohegan Inspire Entertainment Resort in Incheon, South Korea, featuring a foreigner-only casino complex.
“Net revenues of $461.7 million increased $55.9 million compared with the prior-year period, primarily due to continued growth in Mohegan Digital and revenue from Mohegan Inspire,” said Ari Glazer, Chief Financial Officer of Mohegan.
“Consolidated Adjusted EBITDA of $84.0 million decreased $18.2 million compared with the prior-year period, primarily due to operating costs related to the opening of Mohegan Inspire and non-controlling interest adjustments at Niagara Resorts.”
Mohegan Inspire launched its non-gaming amenities on November 30, with the foreigner-only casino opening on February 3, culminating in an official property launch on March 5. Featuring 1,275 hotel rooms, 11 restaurants, and a 15,000-seat arena, the Incheon complex recorded $35.9 million in net revenues for the first quarter of 2024.
The quarter ended with a net loss of nearly $46.1 million, significantly higher than the $9.6 million loss reported the previous year.
Besides Mohegan Inspire, the group also operates properties in the U.S. and Canada, including its flagship property, Mohegan Sun Connecticut.
Domestic net revenue stood at $300.4 million, marking an increase of $3.1 million compared with the prior-year period, which was credited to higher non-gaming revenues. The non-gaming growth was driven by strong entertainment, food and beverage revenues in the period. Adjusted EBITDA of $79.7 million and Adjusted EBITDA margin of 26.5% were flat compared with the prior-year period.
The international business reported net revenues of $108.1 million, up $37.3 million from the same period last year. This was primarily driven by Mohegan Inspire. The company attributed the adjusted EBITDA loss of $16.6 million to operating costs related to the opening of Mohegan Inspire and a $5 million non-controlling interest adjustment related to Niagara Resorts. Excluding the adjustment for non-controlling interest, Adjusted EBITDA loss would have been $11.6 million, the company said.
Mohegan Digital clocked net revenues of $38.8 million, up $16.1 million from the second quarter of last year. The growth was partially due to $8.8 million in iGaming tax reimbursements from iGaming partners being included as an increase to both net revenues and expenses in the current year. Adjusted EBITDA of $20.2 million was $2.1 million favorable compared with the prior-year period.
“These important milestones are vital to the foundation we’re building to ensure our continued success as we build for 13 generations to come, and beyond. As we work towards our objectives, these recent achievements demonstrate the effectiveness of our strategy to support our transformation into a world-renowned global resort operator,” said Raymond Pineault, Chief Executive Officer of Mohegan.
Original article: https://www.yogonet.com/international/noticias/2024/05/13/72144-mohegan-39s-south-korea-resort-digital-arm-drive-quarterly-revenue-to-record-4617-million
