#United States #Connecticut #Mohegan Sun #Mohegan Gaming #Mohegan INSPIRE

Mohegan's Financial Performance in Q1 Fiscal 2025

On February 13, 2025, the Mohegan Tribal Gaming Authority, better known as Mohegan, reported its operating results for the first fiscal quarter ending December 31, 2024. The figures indicate a remarkable year-over-year growth, signaling a strong rebound and performance in the gaming and hospitality industry.

Key Highlights

Mohegan's impressive results show a net revenue increase of $73.7 million compared to the previous year, bringing total revenues to $498.9 million. This represents a substantial 17.3% growth. Additionally, the Adjusted EBITDA soared by 7.6%, reaching $85.1 million. Such figures not only reflect the resilience of Mohegan’s operations but also underscore the effectiveness of their strategic initiatives.

CEO Raymond Pineault emphasized the company's commitment to becoming a leading global omnichannel resort operator. "The remarkable outcomes in our first fiscal quarter are a testament to the dedication of our team in pursuing transformational objectives throughout 2024. I am optimistic about the emerging trends within our omnichannel model and the growing contributions from our non-gaming sectors," he remarked.

Breakdown of Revenue Sources

• - Domestic Resorts: Revenue from domestic resorts, primarily Mohegan Sun, increased by 5.8% to $312.0 million, buoyed by a $5.5 million rise in gaming revenues and a robust 12.6% growth in non-gaming revenues, particularly in food, beverage, and entertainment.
• - International Resorts: International ventures, notably Mohegan INSPIRE, showed significant improvement with net revenues of $135.7 million, up 71.2% from the year prior. Adjusted EBITDA from international operations surged by 168.9%, reaching $4.1 million, supported by a favorable property tax adjustment and increasing patronage.
• - Mohegan Digital: The digital gaming arm continued its upward trajectory, with revenues climbing 46.7% to $53.1 million. The segment's EBITDA also rose significantly, highlighting the strength of Mohegan's online gaming solutions.

Despite the growing revenues, challenges persisted, including a net loss attributable to Mohegan of $85.9 million, slightly improved from the $97.0 million loss reported in the same period last year. This net loss reflects various operational costs, including significant interest expenses and ongoing investments in management and development.

Examining the Financial Landscape

The report highlights total operating costs at $447.9 million, which were also significantly higher compared to $393.3 million the previous year. This marks a strategic investment atmosphere, as management continues to enhance the customer experience across all sectors. Corporate and other expenses totaled $41.3 million, reflecting high labor costs and development expenses tied to Mohegan's new ERP system.

Mohegan also reported liquidity of $192.7 million as of December 31, 2024, showcasing a stable cash position, although the company noted upcoming debt maturities and potential covenant violations on its Korean Term Loan facility, which present risks for investors. A strong focus on operational optimization and strategic growth initiatives positions Mohegan favorably for the upcoming quarters.

Upcoming Conference Call

Investors and interested parties can gain further insights during Mohegan's conference call scheduled for February 13, 2025, at 11:00 AM ET, where they will discuss the first quarter results in detail, providing an opportunity for inquiries regarding the underlying business dynamics and growth predictions for fiscal 2025.

Mohegan's diverse portfolio, encompassing top-tier resorts across the United States and internationally, underscores its goal of innovation and development in the entertainment and gaming sectors. For more information, visit Mohegan Gaming for updates on operational advancements and upcoming initiatives.