Mohegan Casino Achieves Second-Best Operating Year, Unveils Inspire

Posted on: December 18, 2023, 09:01h. 

Last updated on: December 18, 2023, 09:01h.

Mohegan reported that net revenue during its 2023 fiscal year totaled $1.67 billion. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $399.9 million, which ranked second-best in the company’s 27-year history.

Mohegan earnings Inspire South Korea
Mohegan opened Inspire in South Korea near Seoul in November at a cost of $1.6 billion. The company owned by the Mohegan Tribe in Connecticut experienced strong profits in its 2023 fiscal year. (Image: Mohegan)

Mohegan — formerly Mohegan Gaming & Entertainment — is owned and operated by the Mohegan Tribe in Connecticut. The company said its domestic properties fueled the strong profit performance, with adjusted EBITDA totaling $88 million in the fiscal year’s final quarter that ended Sept. 30.

Mohegan’s namesake flagship property in its home state of Connecticut, Mohegan Sun, accounted for $56.3 million of the adjusted fourth-quarter EBITDA. Mohegan Pennsylvania in the Pocono Mountains generated $13.8 million in adjusted EBITDA and Mohegan’s Niagara resorts delivered $14.1 million in adjusted EBITDA.

Mohegan’s digital operations and “management, development, & other” added $16.3 million in adjusted EBITDA. Mohegan said roughly $12.3 million in adjusted EBITDA losses were incurred by corporate expenses.

iGaming Fueling Growth

Mohegan launched its online casino and sportsbook platform in Connecticut with FanDuel in October 2021. Pineault said the tribe’s iGaming and sports betting operations generated a net gaming win of $42.8 million in the fourth quarter — a 65% year-over-year increase.

We had another very successful year,” said Raymond Pineault, Mohegan president and CEO. “Our digital operations continue to help drive Mohegan’s growth.”

Mohegan additionally operates its digital unit in Ontario where iGaming is also permitted. Pineault said account registrations there increased 17% on a quarterly sequential basis and gross gaming climbed over 20%.

“While we’re pleased with the results from our properties across the entire enterprise, we’re particularly encouraged by the continued growth in our digital gaming business unit,” Pineault added.

iGaming in the Canadian province began on April 4, 2022.

Inspire Opens in South Korea

Mohegan in November opened the first phase of its integrated resort casino at Incheon International Airport in South Korea. Inspire debuted with 1,275 guestrooms, 10 restaurants, a 15,000-person arena and events center, and an “immersive entertainment street” enveloped by a 500-foot LED canopy display.

Mohegan is planning to invest up to $5 billion in the complete buildout of Inspire. The first phase, a $1.6 billion spend, is expected to quickly provide returns for the organization.

Asked on the earnings call about when Mohegan expects Inspire to be cash flow positive, Jody Madigan, COO, said that’s expected late next year.

I do believe we will be cash flow positive by the end of the year [2024],” said Madigan.

The chief operating officer said Inspire hosted South Korea’s version of the Grammy Awards — the Melon Awards — during its opening week and “the team pulled it off tremendously.”

“Post that weekend, we’ve seen good foot traffic on the weekends. Our hotel occupancy is where we thought it would be,” Madigan continued. “I think everybody is pleased with what we’ve seen so far.”

As for Inspire’s casino, Mohegan expects to have the gaming concession in hand in the first quarter of 2024.

New York Bid

Mohegan next year will hope to gain one of the three downstate New York casino licenses. Mohegan is partnered with the Soloviev Group for an integrated resort casino pitch on Manhattan’s East Side near the United Nations Headquarters.

Pineault revealed that if the consortium is successful in winning one of the coveted gaming licenses, Mohegan will be responsible for co-developing and then operating the casino and resort portion of the project.

He added that the terms of Mohegan’s financial arrangement with Soloviev will not be discussed publicly because of “our confidential commitment to our partner.”

Source link

Leave a Comment