UNCASVILLE, Conn., Dec. 31, 2024 /PRNewswire/ — Mohegan Tribal Gaming Authority (“Mohegan,” “we” or “our”) today announced operating results for its fourth quarter and full fiscal year ended September 30, 2024.
Fourth Quarter 2024 Highlights:
Full Fiscal Year 2024 Highlights:
“It’s been 30 years since the Mohegan Tribe was granted federal recognition in 1994, and in that time since we opened the Mohegan Sun here in Connecticut, we have transformed Mohegan from a regional, single casino, into one of the premier global integrated omni-channel resort operators. This year marks the culmination of a number of important initiatives which enables us to build on these accomplishments and remain focused on executing our strategy,” said Raymond Pineault, Chief Executive Officer of Mohegan.
Mohegan Operating Results
Three Months Ended
Fiscal Year Ended
($ in thousands, unaudited)
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Net revenues
$ 497,732
$ 444,319
$ 1,888,865
$ 1,672,181
Income from operations
33,456
48,093
169,067
264,532
Net income (loss) attributable to
Mohegan
(58,937)
(19,900)
(231,974)
21,830
Adjusted EBITDA1
81,288
88,049
348,994
399,919
Fourth Quarter 2024
“Net revenues of $497.7 million increased $53.4 million compared with the prior-year period, primarily due to continued growth in Mohegan Digital and revenue from Mohegan INSPIRE,” said Ari Glazer, Chief Financial Officer of Mohegan. “Consolidated Adjusted EBITDA of $81.3 million decreased $6.8 million compared with the prior-year period, primarily due to operating costs related to the opening of Mohegan INSPIRE, low table hold at Mohegan INSPIRE, an $11.9 million non-cash adjustment to the value of a customer contract asset at Niagara Resorts, and a full quarter of ilani management fees earned in the prior-year period, partially offset by strong growth in our Digital operations.
Full Fiscal Year 2024
“Net revenues of $1.9 billion increased $216.7 million compared with the prior-year period, due to the addition of Mohegan INSPIRE, continued growth in Mohegan Digital, and strong non-gaming revenues at our other resorts,” said Ari Glazer, Chief Financial Officer of Mohegan. “Consolidated Adjusted EBITDA of $349.0 million decreased $50.9 million compared with the prior-year period, primarily due to operating costs related to the opening of Mohegan INSPIRE, low table hold at Mohegan INSPIRE, an $11.9 million non-cash adjustment to the value of a customer contract asset at Niagara Resorts, $12.1 million in non-controlling interest at Niagara Resorts, and a full year of ilani management fees earned in the prior-year period, partially offset by strong growth in our Digital operations.
Domestic Resorts
Three Months Ended
Fiscal Year Ended
($ in thousands, unaudited)
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Net revenues
$ 327,065
$ 290,857
$ 1,233,137
$ 1,198,559
Income from operations
66,422
45,846
228,780
222,750
Net income
66,731
44,287
225,465
215,642
Adjusted EBITDA
88,852
66,976
318,890
310,586
Fourth Quarter 2024
Net revenues of $327.1 million increased $36.2 million compared with the prior-year period, primarily due to strong gaming and non-gaming revenues. The non-gaming growth was driven by strong entertainment revenues in the period. Adjusted EBITDA of $88.9 million increased $21.9 million and Adjusted EBITDA margin of 27.2% was 414 bps favorable compared with the prior-year period.
Full Fiscal Year 2024
Net revenues of $1.2 billion increased $34.6 million compared with the prior-year period, primarily due to higher non-gaming revenues. The non-gaming growth was driven by strong entertainment, food and beverage revenues in the period. Adjusted EBITDA of $318.9 million increased $8.3 million and Adjusted EBITDA margin of 25.9% was flat compared with the prior-year period.
International Resorts
Three Months Ended
Fiscal Year Ended
($ in thousands, unaudited)
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Net revenues
$ 125,414
$ 88,680
$ 448,182
$ 314,536
Loss from operations
(36,137)
(18,812)
(113,563)
(24,067)
Net loss
(48,080)
(26,346)
(180,478)
(32,766)
Adjusted EBITDA
(11,468)
23,304
(36,119)
43,488
Fourth Quarter 2024
Net revenues of $125.4 million increased $36.7 million compared with the prior-year period, driven by Mohegan INSPIRE and partially offset by Niagara’s results, which were negatively impacted by a $19.8 million, before non-controlling interest, non-cash adjustment to the value of a customer contract asset. Adjusted EBITDA loss of $11.5 million was primarily due to operating costs related to the opening of Mohegan INSPIRE, low table hold at Mohegan INSPIRE, and an $11.9 million non-cash adjustment to the value of a customer contract asset at Niagara Resorts.
Full Fiscal Year 2024
Net revenues of $448.2 million increased $133.6 million compared with the prior-year period, primarily driven by the continued ramp of Mohegan INSPIRE. Adjusted EBITDA loss of $36.1 million was primarily due to operating costs related to the opening of Mohegan INSPIRE, low table hold at Mohegan INSPIRE, an $11.9 million non-cash adjustment to the value of a customer contract asset at Niagara Resorts, and $12.1 million in non-controlling interest at Niagara Resorts.
Mohegan Digital
Three Months Ended
Fiscal Year Ended
($ in thousands, unaudited)
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Net revenues
$ 43,884
$ 50,040
$ 160,710
$ 100,575
Income from operations
19,336
11,963
78,658
48,359
Net income
19,339
12,132
79,166
49,200
Adjusted EBITDA
19,366
12,112
79,161
49,140
Fourth Quarter 2024
Net revenues of $43.9 million decreased $6.2 million compared with the prior-year period, due to a cumulative fiscal year 2023 accounting adjustment in the prior-year period which increased net revenues to account for iGaming tax reimbursements from our iGaming partners, and for a net-neutral outcome, increased expenses by an equivalent amount, for tax payments made to the state. Adjusted EBITDA of $19.4 million was $7.3 million favorable compared with the prior-year period, due to strong growth in our Mohegan Digital operations.
Full Fiscal Year 2024
Net revenues of $160.7 million increased $60.1 million compared with the prior-year period, primarily due to robust growth in our Connecticut digital operations. Adjusted EBITDA of $79.2 million was $30.0 million favorable compared with the prior-year period, as Mohegan Digital continues to experience rapid growth.
Management, development and other
Three Months Ended
Fiscal Year Ended
($ in thousands, unaudited)
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Net revenues
$ 11,633
$ 48,537
$ 71,659
$ 110,366
Income (loss) from operations
(2,705)
21,995
27,439
69,005
Net income (loss)
(26,747)
15,128
(46,048)
18,046
Adjusted EBITDA
(2,231)
21,804
28,366
68,127
Fourth Quarter 2024
Net revenues of $11.6 million decreased $36.9 million compared with the prior-year period. The decrease is attributed to the prior year benefiting from a full quarter of ilani management fees, Mohegan INSPIRE development fees, and higher inter-company entertainment revenues. Adjusted EBITDA loss of $2.2 million was $24.0 million unfavorable compared with the prior-year period.
Full Fiscal Year 2024
Net revenues of $71.7 million decreased $38.7 million compared with the prior-year period, primarily driven by a full year of ilani management fees earned and Mohegan INSPIRE development fees in the prior-year period. Adjusted EBITDA of $28.4 million was $39.8 million unfavorable compared with the prior-year period.
Corporate and other
Three Months Ended
Fiscal Year Ended
($ in thousands, unaudited)
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Net revenues
$ (13)
$ 129
$ 135
$ 441
Loss from operations
(13,460)
(7,861)
(52,247)
(41,485)
Net loss
(70,180)
(61,388)
(310,079)
(218,262)
Adjusted EBITDA
(13,232)
(11,081)
(41,304)
(41,364)
Fourth Quarter 2024
Adjusted EBITDA was $2.2 million unfavorable compared with the prior-year period, primarily due to higher Corporate labor costs. Net loss was $8.8 million unfavorable compared with the prior-year period, primarily due to a loss on fair value adjustment attributable to changes in the estimated value of the warrants and put option related to our Korea Term Loan.
Full Fiscal Year 2024
Adjusted EBITDA was flat compared with the prior-year period, primarily due to Corporate cost management. Net loss was $91.8 million unfavorable compared with the prior-year period, primarily due to a loss on fair value adjustment attributable to changes in the estimated value of the warrants and put option related to our Korea Term Loan.
Other Information
Liquidity
As of September 30, 2024, and September 30, 2023, Mohegan held cash and cash equivalents of $204.8 million and $217.3 million, respectively. Inclusive of letters of credit, which reduce borrowing availability, Mohegan had $187.2 million of borrowing capacity under its senior secured credit facility and line of credit as of September 30, 2024. In addition, inclusive of letters of credit which reduce borrowing availability, Niagara Resorts had $37.0 million of borrowing capacity under its revolving credit and swingline facility as of September 30, 2024.
As discussed in Note 1 to our Fiscal 2024 Annual Report, the Company has upcoming debt maturities and faces an imminent debt covenant violation under its Korean Term Loan facility, which taken together present significant risks to investors. Investors are encouraged to review the Company’s Annual Report available on the Mohegan Gaming Investor Relations website, including the Financial Statements and Risk Factors, for additional information.
About Mohegan
Mohegan is the owner, developer, and manager of premier entertainment resorts in the United States, Canada, and Northern Asia. Mohegan’s U.S. operations include resorts in Connecticut, Pennsylvania, New Jersey, and Nevada; Canadian operations are based in Niagara Falls, Ontario; and Mohegan INSPIRE is located in Incheon, South Korea. The brand’s iGaming division, Mohegan Digital, provides cutting-edge online gaming solutions to Mohegan’s loyal fan base and meets the digital needs of North American customers. Mohegan is owner and operator of Connecticut Sun, a professional basketball team in the WNBA. For more information on Mohegan and its properties, please visit www.mohegangaming.com.
Cautionary Statements Regarding Forward-Looking Information
Some information included within this press release contains forward-looking statements. Such statements may include information relating to business development activities, as well as capital spending, financing sources, the effects of regulation, including gaming and tax regulation, and increased competition. These statements can sometimes be identified by our use of forward-looking words such as “may,” “will,” “anticipate,” “estimate,” “expect” or “intend” and similar expressions. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated future results and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by us or on our behalf. The forward-looking statements included within this press release are made only as of the date of this press release. We do not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. We cannot assure you that projected results or events will be achieved or will occur.
Contact:
Joffre Wells
Vice President of Capital Markets, Investor Relations & Corporate Treasurer
Mohegan
(860) 862-9135
MOHEGAN TRIBAL GAMING AUTHORITY
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
(unaudited)
Three Months Ended
Fiscal Year Ended
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Revenues:
Gaming
$ 315,606
$ 297,845
$ 1,242,486
$ 1,146,124
Food and beverage
54,971
41,566
197,431
157,569
Hotel
45,049
30,456
154,145
118,211
Retail, entertainment and other
82,106
74,452
294,803
250,277
Net revenues
497,732
444,319
1,888,865
1,672,181
Operating costs and expenses:
Gaming
181,700
174,889
692,922
601,734
Food and beverage
50,760
32,735
179,172
129,330
Hotel
17,629
12,066
65,036
49,769
Retail, entertainment and other
41,852
31,542
131,020
98,750
Advertising, general and administrative
109,377
79,231
402,268
322,146
Corporate
18,472
21,184
60,912
65,854
Depreciation and amortization
33,968
25,277
130,297
101,046
Impairment of tangible assets
2,727
—
6,372
—
Other, net
7,791
19,302
51,799
39,020
Total operating costs and expenses
464,276
396,226
1,719,798
