Mohegan reports Q1 2025 revenue rise amid South Korea concerns

Mohegan reported a significant rise in first-quarter revenue for fiscal 2025, driven by strong performance across its domestic and international resorts, as well as its digital gaming division. However, the company also posted a net loss of $85.9 million and flagged financial challenges related to its Korean operations.  

Mohegan’s net revenue for the quarter ended Dec. 31, 2024, increased by $73.7 million year-over-year to $498.9 million. Consolidated Adjusted EBITDA rose by $6 million to $85.1 million, reflecting strong performances from Mohegan Sun, Mohegan INSPIRE in South Korea, and Mohegan Digital.  

CEO Raymond Pineault highlighted the company's strategic progress: “During 2024, Mohegan rolled out a number of important initiatives as part of our strategy to become one of the premier global omnichannel resort operators. 

"Our success in accomplishing these transformational objectives is a credit to our incredible team, and as I look forward to 2025, I’m optimistic about the trends I see emerging within our omnichannel business and from the increased contributions by our non-gaming segments.”  

In addition to revenue growth, Mohegan’s net loss of $85.9 million marked a nearly $11 million improvement from the prior-year period.  

• Domestic Resorts: Revenue increased $17.1 million to $312.0 million, with gaming revenue up 2.7% and non-gaming revenue up 12.6%. Adjusted EBITDA rose $6.5 million to $74.6 million.  

• International Resorts: Revenue climbed $56.4 million to $135.7 million, driven by Mohegan INSPIRE’s continued ramp-up and a one-time tax adjustment at Niagara Resorts. Adjusted EBITDA jumped 168.9% to $4.1 million.  

• Mohegan Digital: Revenue reached $53.1 million, up $16.9 million year-over-year, while Adjusted EBITDA soared 52.1% to $25.1 million.  

• Management & Development: Revenue fell $14.1 million to $5.1 million, primarily due to the loss of ilani management fees.  

Mohegan reported $192.7 million in cash and cash equivalents as of Dec. 31, 2024, down from $204.8 million in September 2024. The company has $158.4 million in borrowing capacity under its senior secured credit facility, with an additional $34.8 million available at Niagara Resorts.  

However, Mohegan disclosed financial covenant violations related to its Korea Term Loan, signaling potential risks to investors. The company recently amended its credit agreement for Mohegan INSPIRE in South Korea, which has yet to meet initial performance expectations.  

While Mohegan executives remain confident in INSPIRE’s long-term potential, challenges in the South Korean market persist. Lenders of MGE Korea Ltd — the promoter of the Mohegan Inspire Entertainment casino resort — have moved to take over the shares of MGE Korea.