Resorts developer and manager Mohegan Gaming has announced financial results for the first quarter of fiscal year 2023. For the three-month period ended December 31, the gaming arm of the Mohegan Tribe posted net revenue of $406.6 million, marking a 1.2% increase when compared to the same quarter the previous year.
Income from operations nearly doubled year-over-year, climbing to $70.2 million. Adjusted EBITDA during Q1 grew by 3.8% and reached $101.1 million. Revenue growth was primarily driven by a full period of operations and a return to “relatively normal” operating conditions at the company’s Niagara resorts, combined with iGaming and sports betting growth in Connecticut.
“Our consolidated Adjusted EBITDA of $101.1 million continues our trend of strong performance,” said Raymond Pineault, Chief Executive Officer of Mohegan. “Our diversification strategy and continued focus on profitability have enabled Mohegan to offset some of the inflationary and labor pressures and achieve these strong results.”
Carol Anderson, Chief Financial Officer of Mohegan, also commented: “Our Adjusted EBITDA margin of 24.9% was 605 basis points favorable compared with our pre-COVID-19 first quarter of fiscal 2020 and 62 basis points favorable compared with the prior-year period.”
Mohegan Sun, Connecticut
Net revenues for the company’s flagship property Mohegan Sun in Connecticut decreased $12.2 million in Q1, attributed to declines in both slot and table games revenues, reflecting lower overall volumes as the prior year benefited from the property’s 25th-anniversary celebration. Results were also impacted by unfavorable slot and table hold and weather in the current-year period.
Meanwhile, the Mohegan Pennsylvania casino in Wilken-Barres saw a net revenue drop of $4.4 million, primarily due to lower gaming revenues as a result of lower gaming volumes, impacted by poor weather and table games hold percentage. Adjusted EBITDA decreased $2.4 million, or 16.7%, compared with the prior-year period, primarily due to the decrease in net revenues.
Mohegan’s Niagara operations managed to post a revenue increase, up almost 18%, or $11.2 million more than the prior-year quarter. They benefited both from higher gaming volumes and a substantial increase in non-gaming revenues, including the impact of the opening of the 5,000-seat OLG Stage entertainment venue and the properties operating without Covid restrictions.
In a call with investors, officials revealed that the development of the Korean integrated resort Inspire Korea is running ahead of schedule, with non-gaming offerings set to open later this year. The update follows the completion of financing, which saw construction of the Incheon property resume in February last year.
While Pineault said the company anticipates project completion and non-gaming opening “in the latter part of 2023,” there is no set date for the casino opening, although the CEO pointed out it should happen “shortly thereafter upon licensing.” The executive also noted Inspire construction is running 4.5% ahead of schedule, with construction at 43.5%.
See Mohegan’s full results for Q1 fiscal year 2023 here.