Mohegan reported a Q1 revenue of $425.2m (£336.8m/€394.6m), showing an improvement from $406.6m in 2023. Growth in the digital business and non-gaming revenue from Mohegan Inspire contributed to this increase.
The new Mohegan Inspire resort had a soft opening on 30 November, offering visitors access to amenities such as three hotel towers, more than 10 restaurants, and a multi-purpose arena. The resort plans to be fully operational by the end of the first half.
However, the costs associated with the opening of Mohegan Inspire affected the financial performance in Q1, resulting in a net loss for the quarter. Additionally, lower gaming volumes and table hold impacted Mohegan’s revenue in the US market.
Breaking down the segmental performance for Q1, gaming revenue increased by 1.7% to $285.7m. Food and beverage revenue rose by 13.8% to $43.7m, hotel revenue grew by 6.8% to $31.6m, and retail, entertainment, and other revenue increased by 11.3% to $64.3m.
The Mohegan Sun property in Connecticut remains the primary revenue source, reaching $228.4m in Q1 revenue, a 4.6% decrease from the previous year. Mohegan Pennsylvania recorded $59.0m in revenue, down 1.2%, but partially offset by strong food, beverage, and hotel revenue. Niagara Resorts experienced a slight increase of 0.2% in revenue to $74.2m, primarily driven by robust food, beverage, and entertainment revenue.
The digital business performed exceptionally well in Q1, with a revenue increase of 224.1% to $36.2m. This growth was attributed to an accounting adjustment related to online casino and sports wagering payments to the state of Connecticut.
In terms of spending, operating costs for Q1 amounted to $393.3m, a 16.9% increase. Gaming expenses accounted for the largest portion at $159.1m, followed by advertising, general, and administrative costs at $95.7m. Other costs totaled $128.8m, including net interest expenses and a loss on fair value adjustment.
Therefore, Mohegan experienced a pre-tax loss of $96.8m in Q1, compared to a $2.2m profit in the same period of 2023. After tax, the net loss amounted to $97.0m, contrasting with the previous year’s $807,000 profit. The adjusted EBITDA for the quarter declined by 21.9% to $79.0m.
