Mohegan Reports Double-Digit Growth in Fiscal Q2 2023

Mohegan Tribal Gaming Authority released its second fiscal 2023 quarter report on Thursday posting double-digit increases across the key performance metrics, but net loss for the period more than tripled.

Mohegan Digital Is Pulling Its Weight

Net revenue for the three months ended March 31, 2023, was $405.8 million, registering an increase of 13.2% from $358.5 million the tribal gaming authority reported for the second fiscal 2022 quarter. On a sequential basis, revenues marginally decreased ($406.62 million in fiscal Q1).

Mohegan attributed the year-over-year growth in net revenue to the quarter representing a full period of operations and a return to relatively normal operating conditions at the Niagara Resorts, as well as the continued growth in the company’s online casino gaming and sports wagering operations in Connecticut.

Net revenue varied from $225.9 million at Mohegan Sun (+$10.4 million; $215.5 million in fiscal Q2 2022), $63.2 million at Mohegan Pennsylvania (+$1.1 million; $62.1 million in fiscal Q2 2022), $70.8 million at Niagara Resorts (+$18.5 million; $52.3 million in fiscal Q2 2022), and $22.7 million for Mohegan Digital (+16.8 million; $5.9 million).

Income from operations in the quarter amounted to $63.8 million, up 11.1% from $57.5 million in fiscal Q2 2022. The result was influenced almost entirely by Mohegan Digital with an increase of $16.3 million which was partially offset by the negative reading at Niagara Resorts, $2.9 million.

“Our consolidated Adjusted EBITDA of $102.1 million reflects the positive results from our properties and digital operations,” commented Raymond Pineault, chief executive officer of Mohegan.

Adjusted EBITDA of $102.1 million registered an increase of 17.8% year-over-year ($86.7 million in fiscal Q2 2022) and a marginal decrease from $101.1 million in fiscal Q1 2023.

Adjusted EBITDA increased by $2.7 million at Mohegan Sun and $16.6 million for Mohegan Digital, decreased by $2.3 million at Niagara Resorts and was almost unchanged at Mohegan Pennsylvania.

Non-Cash Adjustment Impacting Niagara Resorts

Mohegan said that the decrease in Adjusted EBITDA at Niagara Resorts was primarily due to a $3.7 million non-cash adjustment as per the Casino Operating and Services Agreement contract asset and the continued reintroduction of certain lower margin non-gaming amenities.

We are encouraged by the strong results from our digital segment and look forward to continued growth in that line of business.

Raymond Pineault, CEO, Mohegan

Mohegan’s chief financial officer, Carol Anderson, also commented on the results, noting that the fiscal Q2 2023 Adjusted EBITDA margin of 25.2% “was 337 basis points favorable” compared to Mohegan’s Q2 2019, and “99 basis points favorable” compared to Q2 2022.

Mohegan’s liquidity at the end of the quarter stood at $188.8 million in cash and $164.7 million in cash equivalents. In addition, Mohegan had $226.2 million under its senior secured credit facility and an additional $121.9 million under the Niagara Resorts revolving credit facility.