Mohegan's Q4 revenue soars by 7.5%; sets new record for annual consolidated net revenue

Gaming and hospitality firm Mohegan saw its net revenue grow 7.5% to $444.3 million in the three-month period ending September 30, pushing it to its highest consolidated net revenue for a single fiscal year. 

The quarter's revenue contributed to Mohegan’s record consolidated net revenue of $1.67 billion for 2023. Mohegan also generated adjusted EBITDA of $399.9 million for the full year, the second highest in its history, just below the $403.9 million record set in 2022. The high adjusted EBITDA was posted despite a $4.7 million interest impact from Mohegan’s Niagara debenture conversion and related transactions. 

"Our Adjusted EBITDA for fiscal 2023 of $399.9 million was the second highest in our 27-year history, compared with Adjusted EBITDA for fiscal 2022 of $403.9 million, which was the highest to date," said Raymond Pineault, Chief Executive Officer of Mohegan.

"We continue to see growth in our Digital gaming segment and with the recent soft opening of Mohegan INSPIRE on November 30th, our diversification efforts will further enable Mohegan to achieve strong results," he added.

Raymond Pineault

Mohegan's digital segment delivered solid results, increasing $44.2 million to $50.04 million; partially due to an accounting adjustment that increased both net revenues and expenses by $32 million due to how Connecticut requires that online casino and sports wagering payments be made to the state. 

These increases included adjustments for prior fiscal 2023 periods. Adjusted EBITDA of $12.1 million was $9 million favorable compared with the prior-year period as Mohegan Digital continues to focus on growth and profitability.

It was gaming that made up the grand majority of the revenue, sitting at $297.8 million for the quarter. The remaining net revenue was made up of food and beverage, hotel, retail and entertainment, and others.

Total operating costs and expenses for the quarter increased by 13.3% to $396.2 million, bringing the operating income to $48 million. Gaming generated the highest level of operating costs, hitting $174.8 million. Advertising, general, and administrative costs were $79.2 million, while food and beverage costs topped $32.7 million.

Other expenses totaled $60.6 million, comprising mostly $54.6 million in interest expense. This left the pre-tax income at a loss of $12.5 million. Moreover, the income tax provision of $6.3 million brought the total net loss to $18.8 million, a stark contrast to the net income of $29.6 million year-on-year.

Mohegan Pennsylvania

Breaking down the results by property, net revenues decreased $12.5 million to $224.2 million compared with the prior-year period at flagship resort Mohegan Sun in Connecticut, primarily due to lower gaming volumes and table hold for the quarter. Non-gaming growth driven by food, beverage, entertainment, and hotel revenues partially offset the decline in gaming revenues. 

Meanwhile, at Mohegan Pennsylvania, net revenues decreased $1.9 million to $62.7 million compared to the same quarter in the previous fiscal, also due to lower gaming volumes. For its part, Niagara Resorts saw a $4.1 million increase in net revenue to $88.6 million, primarily driven by the continued ramp of the OLG Stage entertainment venue which opened in October 2022.

See Mohegan's full Q4 2023 report here.