Mohegan’s Q4 Fiscal Results Highlight Growth and Diversification

The Mohegan Tribal Gaming Authority recently released its fourth-quarter fiscal results ending 30 September 2023, showcasing notable strides in revenue diversification despite inconsistent results across some metrics. The company’s dedication to its customers and employees also set it apart from the competition, as management remained confident in its 2024 prospects, placing significant hope in its new and planned venues. 

Some Setbacks Offset Record Revenues

The overall net revenue for Mohegan operations surged to $444.3 million, marking a commendable 7.6% increase in year-on-year comparisons. This increase contributed to a record 2023 consolidated net revenue of $1.67 billion, reaffirming the company’s successful strategy. Adjusted EBITDA, likewise, fell just short of 2022’s full-year record of $403.9 million, settling at $399.9 million for 2023.

However, a more comprehensive look into individual metrics reveals that income from all operations experienced a 24% decrease, totaling $48 million. Even more stark was the net income attributable to Mohegan, which saw a 116% decline, resting at -$19.9 million. Additionally, adjusted EBITDA for all operating results witnessed a decrease of $11.7 million, amounting to $88 million.

Individual Venue Results Remain Mixed

These results are primarily due to the inconsistent performances of individual properties. Mohegan Pennsylvania was among the best-performing venues, offsetting the 3% decline in net revenue to $62.8 million with a 4% increase in adjusted EBITDA and a 4% upsurge in general net income. However, other resorts faired noticeably worse.

Niagra Resorts’ 5% increase in net revenue to $88.7 million did not reflect across other metrics as adjusted EBITDA decreased by 21% to $14 million, while net attributable income plummeted by 59% to $5 million. Mohegan Sun fared even worse, with net revenue shrinking by 5% to $224 million and Adjusted EBITDA falling off a cliff, dropping 134% to $56 million. 

Mohegan Is Optimistic Regarding Its Prospects

Despite rising revenues, significantly higher operating costs left Mohegan with a net loss of $18.8 million for the quarter, a sharp decline from Q4 2022’s $29.6 million net income. However, company management remained confident in its direction as CEO Raymond Pineault was optimistic regarding Mohegan’s foray into online gaming and the success of its new venues.

We were exceptionally pleased with the performance of our digital team. We are also extremely excited about the opening of our newest venture, Mohegan INSPIRE, and the property’s ability to drive additional growth for the organization.

Raymond Pineault, Mohegan Gaming & Entertainment CEO

The company’s diversified approach and the recent strategic initiatives remain vital focal points in navigating the gaming landscape, ensuring resilience and sustained growth despite the dynamic market conditions. Mohegan has demonstrated its ability to capitalize on its investments, so 2024 should hopefully bring enduring success for the tribal operator.