Mohegan Reports Q4 and FY2024 Financial Performance

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Mohegan, a globally recognized entertainment and gaming enterprise, has unveiled its financial performance for Q4 and the fiscal year ending September 30, 2024. The report highlights growth in revenue alongside challenges in profitability due to rising operational costs and international ventures.

Q4 2024 Financial Performance

Revenue Growth Amid Operational Challenges

Mohegan reported net revenue of $497.7 million for Q4, a 12% increase compared to the same quarter in 2023. This growth was driven by strong domestic performance and contributions from Mohegan Digital and the newly launched Mohegan Inspire.

Despite the revenue growth, income from operations dropped by 30% to $33.5 million, attributed to costs associated with the opening of Mohegan Inspire. Furthermore, the quarter recorded a net loss of $63.3 million, a significant decline from the $18.9 million loss reported last year.

Performance Breakdown: Domestic vs. International

Domestic Operations:
Domestic revenue grew by 12% to $327.1 million, with adjusted EBITDA rising 33% to $88.9 million. Income from operations at US properties surged 45% to $66.4 million, and net income increased by 51% to $66.7 million.
International Operations:
International ventures saw a 41% revenue increase, but operating losses widened to $36.1 million. The net loss for international properties nearly doubled to $48.1 million, while adjusted EBITDA declined from $23.3 million to a negative $11.5 million.

Mohegan Digital: A Bright Spot

Mohegan Digital showcased impressive growth, with net revenue increasing by 60% to $160.7 million. Adjusted EBITDA and net income also rose by 61% to $79.2 million, reflecting the strength of the company’s digital strategy.

Full-Year 2024 Financial Highlights

Overall Performance

For the fiscal year 2024, Mohegan reported net revenue of $1.9 billion, a 13% increase year over year. However, income from operations fell 36% to $169.1 million, and the company recorded a net loss of $234.5 million, a stark decline from the $22.9 million net income in 2023.

Adjusted EBITDA for the year stood at $349 million, representing a 13% decrease compared to the previous year.

Domestic Operations: Stable Growth

Domestic properties delivered steady results, with:

Net revenue increasing by 3% to $1.2 billion.
Net income rising by 5% to $225.5 million.
Adjusted EBITDA growing by 3% to $318.8 million.

These figures underscore the resilience of Mohegan’s domestic portfolio amidst broader market challenges.

International Resorts: Mixed Results

Mohegan’s international operations experienced both growth and setbacks.

Net revenue surged by 42% to $448.2 million.
However, net loss deepened to $180.5 million, compared to $32.8 million in 2023.
Adjusted EBITDA swung from a positive $43.5 million to a negative $36.1 million.

These figures reflect the high costs and operational challenges associated with expanding into new markets.

Strategic Insights and Future Outlook

Mohegan’s CFO, Ari Glazer, provided valuable context for the year’s results: “Net revenues of $497.7 million increased by $53.4 million compared with the prior-year period, primarily due to continued growth in Mohegan Digital and revenue from Mohegan Inspire. Consolidated adjusted EBITDA of $81.3 million decreased by $6.8 million compared with the prior-year period, primarily due to operating costs related to the opening of Mohegan Inspire, low table hold at Mohegan Inspire, and an $11.9 million non-cash adjustment to the value of a customer contract asset at Niagara Resorts.”

Glazer emphasized the role of Mohegan Digital in driving growth, along with the potential for operational efficiencies as new projects stabilize.

Mohegan Inspire: A Key Investment

The Mohegan Inspire resort, a major development project, played a pivotal role in the company’s 2024 financial narrative. While it contributed significantly to revenue growth, its associated costs impacted profitability. As the resort matures, Mohegan anticipates a more balanced financial contribution.

Digital Expansion: Sustained Momentum

Mohegan Digital’s stellar performance highlights the company’s focus on the digital gaming sector. The 60% increase in revenue and 61% rise in profitability affirm the platform’s strategic importance.

Conclusion: The Results

Mohegan’s FY2024 results reflect a company navigating growth and challenges in equal measure. While revenue and digital growth demonstrate strength, rising costs and international losses highlight areas for improvement. As Mohegan continues its expansion and operational optimization, the future remains promising.

FAQs About Mohegan’s Q4 and FY2024 Financial Report

1. What is the total net revenue reported by Mohegan for Q4 2024?

Mohegan reported net revenue of $497.7 million for Q4 2024, reflecting a 12% increase compared to the same period in 2023.

2. What caused the drop in income from operations in Q4 2024?

Income from operations decreased by 30% to $33.5 million, primarily due to costs associated with the opening of Mohegan Inspire and other operational expenses.

3. What was Mohegan’s net loss for Q4 2024?

Mohegan recorded a net loss of $63.3 million in Q4 2024, compared to a net loss of $18.9 million in Q4 2023.

4. How did Mohegan’s domestic operations perform in Q4 2024?

Domestic revenue increased by 12% to $327.1 million.
Adjusted EBITDA rose by 33% to $88.9 million.
Income from operations grew by 45% to $66.4 million.
Net income surged by 51% to $66.7 million.

5. What were the challenges faced by Mohegan’s international operations in Q4 2024?

Despite a 41% increase in revenue, international operations recorded operating losses of $36.1 million and a net loss of $48.1 million, nearly double the losses from the previous year.

6. How did Mohegan Digital perform in Q4 2024?

Mohegan Digital achieved remarkable growth:

Net revenue increased by 60% to $160.7 million.
Both adjusted EBITDA and net income rose by 61% to $79.2 million.

7. What was Mohegan’s total net revenue for FY2024?

For the fiscal year 2024, Mohegan reported net revenue of $1.9 billion, representing a 13% year-over-year increase.

8. What was the full-year net loss for Mohegan in FY2024?

Mohegan recorded a net loss of $234.5 million for FY2024, compared to a net income of $22.9 million in FY2023.

9. How did domestic properties perform for FY2024?

Net revenue grew by 3% to $1.2 billion.
Net income increased by 5% to $225.5 million.
Adjusted EBITDA rose by 3% to $318.8 million.

10. What were the results for Mohegan’s international resorts in FY2024?

Net revenue increased by 42% to $448.2 million.
Net loss widened significantly to $180.5 million, compared to $32.8 million in FY2023.
Adjusted EBITDA swung from a positive $43.5 million to a negative $36.1 million.

11. What role did Mohegan Inspire play in FY2024 financial results?

Mohegan Inspire contributed significantly to revenue growth but also incurred high operational costs, which impacted profitability during its initial phase.