Mohegan Tribal Gaming Authority (Mohegan) has reported remarkable financial results for the third fiscal quarter of the year, marking a new high in quarterly net revenue. The company achieved nearly $504.2 million in revenue, reflecting a robust 21.4% increase compared to the same period last year.
The significant revenue boost was largely attributed to the continued success of Mohegan Digital and the new Mohegan INSPIRE facility. Mohegan’s CFO, Ari Glazer, explained, “Net revenues of $504.2m increased $88.8m compared with the prior-year period, primarily due to continued growth in Mohegan Digital and revenue from Mohegan INSPIRE.”
However, the company’s consolidated adjusted EBITDA saw a slight decline. It decreased by $3.9 million to $104.7 million, impacted by the operational costs associated with Mohegan INSPIRE and adjustments related to non-controlling interests at Niagara Resorts. Excluding these adjustments, adjusted EBITDA would have been $108.3 million, showing no significant change from the previous year.
Challenges and Opportunities Ahead
Despite the impressive revenue figures, Mohegan experienced a 12.1% drop in operating income, which totaled $72.4 million for the quarter. Additionally, the company reported a net income loss of $29.9 million, down from nearly $82.4 million in the prior year.
CEO Raymond Pineault expressed optimism about the company’s strategy and future prospects, stating, “The combination of profitable growth in Digital, the ramp at INSPIRE since the grand opening in March, combined with the stability and resilience of our flagship, Mohegan Sun in Connecticut, highlights some of the important drivers for our growth in the present and future.”
In terms of revenue growth across different segments, Mohegan Digital saw a dramatic 151.3% increase year-over-year, bringing in $41.9 million for Q3 FY2024. International operations also performed well, with a 67% rise in revenue, totaling $135.4 million for the quarter. Domestic operations, while growing at a slower rate, contributed significantly with $310.7 million in revenue, a 2.6% increase from the previous year.
The gaming sector remained a major revenue driver, generating $335.8 million, a 19.1% increase from the previous year. The company also saw growth in its food and beverage, hotel, and retail sectors, contributing positively to the overall revenue for the quarter.
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