Mohegan reported a net revenue of $444.3 million for the quarter, contributing to a record consolidated net revenue of $1.67 billion for the year 2023. The company also achieved adjusted EBITDA of $399.9 million, the second-highest in its history, just below the record of $403.9 million in 2022. Despite a $4.7 million interest impact from the Niagara debenture conversion, Mohegan’s high adjusted EBITDA reflects strong performance. CEO Raymond Pineault expressed optimism about growth in the gaming segment and the impact of new property openings on the company’s diversification efforts.
The breakdown by property reveals that Mohegan Sun accounted for $224.2 million in net revenue, down by 5.2% due to decreased gaming volumes and table hold. Mohegan Niagara generated $88.6 million, ticking up by 4.9%. Mohegan Pennsylvania generated $62.7 million, a dip of 2.9%, while Mohegan Digital saw significant growth with $50.0 million in net revenue, up by $44.2 million. This increase was driven by an accounting adjustment related to online casino and sports wagering payments in Connecticut. Net revenues from management, development, and other segments totaled $34.4 million, an impressive growth of 116.6%. However, net revenue under the “all other” category decreased by 41.7% to $3.8 million.
Gaming was the largest contributor to net revenue, totaling $297.8 million for the quarter. Other sources of net revenue included food and beverage, hotel, retail, and entertainment. Total operating costs and expenses increased by 13.3% to $396.2 million, resulting in an operating income of $48.0 million. The highest operating costs were related to gaming at $174.8 million, followed by advertising, general, and administrative costs at $79.2 million, and food and beverage costs at $32.7 million. Other expenses, primarily interest expense, totaled $60.6 million. The pre-tax income showed a loss of $12.5 million after considering an income tax provision of $6.3 million, resulting in a net loss of $18.8 million. This was a significant contrast to the net income of $29.6 million in the previous year.
