Mohegan reports second best year of operations, opens Inspire in South Korea
Mohegan reported fiscal 2023 net sales totaling $1.67 billion. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) hit $399.9 million, the second-highest performance in the company's 27-year history.
Mohegan, formerly Mohegan Gaming & Entertainment, is owned and operated by the Mohegan Tribe of Connecticut. The company said its domestic properties drove strong earnings performance, with adjusted EBITDA totaling $88 million in the last fiscal quarter ended Sept. 30.
Fourth-quarter adjusted EBITDA at Mohegan Sun, its flagship namesake hotel in its home state of Connecticut, was $56.3 million.Mohegan Pennsylvania in the Pocono Mountains had adjusted EBITDA of $13.8 million, while Mohegan Niagara Resort had adjusted EBITDA of $14.1 million.
Mohegan's digital operations and "management, development and other" adjusted EBITDA increased $16.3 million. Mohegan said the company's expenses resulted in a loss of approximately $12.3 million in adjusted EBITDA.
iGaming drives growth
Mohegan launched FanDuel, an online casino and sports betting platform in Connecticut in October 2021. The tribe's iGaming and sports betting operations generated $42.8 million in net gaming profits in the fourth quarter, a 65% increase year over year, Pineault said.
We have had another very successful year," said Mohegan President and CEO Raymond Pineault."Our digital efforts continue to help drive Mohegan's growth. "
Mohegan is also operating its digital unit in Ontario, which allows iGaming. Pineault said account registrations are up 17% sequentially and gross profit is up more than 20%.
While we are pleased with our results across the company, we are particularly encouraged by the continued growth in our Digital Gaming segment," Pineault added.
iGaming in Canadian Province begins April 4, 2022.
Inspire opens in South Korea
In November, the first phase of the Mohegan Sun Group's integrated resort casino project opened at Incheon International Airport in South Korea.Inspire debuts with 1,275 guest rooms, 10 restaurants, a 15,000-seat arena and event center, and an "immersive entertainment street" surrounded by a 500-foot-long LED canopy display.
Mohegan plans to invest up to $5 billion to fully expand Inspire. The first phase, a $1.6 billion investment, is expected to bring rapid returns to the organization.
When asked on the conference call when Mohegan expected Inspire to be cash flow positive, Chief Operating Officer Jody Madigan said it would likely be late next year.
“I believe by the end of the year [2024] we will be cash flow positive,” Madigan said.
During its first week in business, the COO said "the team did a great job" as Inspire hosted South Korea's version of the Grammys, the Melon Awards.
"Coming out of this weekend, we're seeing a lot of traffic over the weekend. Our hotel occupancy is in line with our expectations," Madigan continued. "I think everyone is happy with what we've seen so far. "
As for Inspire’s casino, Mohegan expects to receive its gaming license in the first quarter of 2024.
New York Offer
Next year, Mohegan Sun hopes to receive one of three casino licenses from New York state. Mohegan is partnering with the Soloviev Group to build an integrated resort casino on Manhattan's East Side near the United Nations headquarters.
Pineault announced that if the consortium is successful in securing one of the coveted gaming licenses, Mohegan will be responsible for co-developing and operating the casino and resort portion of the project.
He said the terms of Mohegan's financial agreement with Soloviev would not be discussed publicly due to "our commitment to confidentiality with our partners."
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Source: www.casino.org
