Home > Finance > Mohegan Q4 nudges FY23 net revenue to new heights

Mohegan Q4 nudges FY23 net revenue to new heights

| By Marese O'Hagan
Mohegan Gaming and Entertainment saw net revenue growth of 7.5% in Q4, pushing it to its highest consolidated net revenue for a single fiscal year.
Mohegan Q4

Net revenue of $444.3m during the quarter contributed to Mohegan’s record consolidated net revenue of $1.67bn for 2023. Mohegan also generated adjusted EBITDA of $399.9m for the full year, the second highest in its history. This was just below the $403.9m record set in full-year 2022.

The high adjusted EBITDA came about despite a $4.7m interest impact from Mohegan’s Niagara debenture conversion and related transactions.

Raymond Pineault, CEO of Mohegan, said he sees growth developing in Mohegan’s gaming segment, adding that Mohegan’s diversification efforts will be supported by the opening of new properties.

“Our adjusted EBITDA for fiscal 2023 of $399.9m was the second highest in our 27-year history, compared with adjusted EBITDA for fiscal 2022 of $403.9m, which was the highest to date,” said Pineault.

“We continue to see growth in our digital gaming segment and with the recent soft opening of Mohegan INSPIRE on 30 November, our diversification efforts will further enable Mohegan to achieve strong results.”

Earlier this year, Pineault spoke to iGB about how he sees Mohegan achieving omnichannel success.

Breaking down by property

The Mohegan Sun property accounted for $224.2m in net revenue for the third quarter ended 30 September. This was down by 5.2%, which Mohegan attributed to decreased gaming volumes and table hold.

Mohegan Niagara generated $88.6m in net revenue during Q4, ticking up by 4.9%. Mohegan Pennsylvania generated $62.7m, a dip of 2.9%, while Mohegan Digital raked in $50.0m – up by $44.2m.

This was due to an accounting adjustment, which saw net revenues and expenses incur an additional $32m. This additional amount is relative to how Connecticut necessitates online casino and sports wagering payments are made to the state.

Net revenues from management, development and other segments totalled at $34.4m – up by more than double, 116.6%. Net revenue under “all other” decreased by 41.7% to $3.8m.

Mohegan incurs net loss in Q4

Gaming made up a grand majority of the revenue, sitting at $297.8m for the quarter. The remaining net revenue was made up of food and beverage, hotel, retail and entertainment and other.

Total operating costs and expenses for the quarter increased by 13.3% to $396.2m, bringing the operating income to $48.0m. Gaming generated the highest level of operating costs, hitting $174.8m. Advertising, general and administrative costs were $79.2m, while food and beverage costs topped $32.7m.

Other expenses totalled $60.6m, comprising mostly of $54.6m in interest expense. This left the pre-tax income at a loss of $12.5m.

Income tax provision of $6.3m brought the total net loss to $18.8m, a stark contrast to the net income of $29.6m year-on-year.

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