All eyes were on Mohegan to see how the company would fare in the first year of Mohegan Inspire in South Korea.
Mohegan, a leading global gaming and entertainment company, reported its financial results for the fourth quarter and full year 2024, ending September 30th. While the company achieved record-breaking annual revenue, increased by 13% to $1.9 billion, it also faced significant headwinds, resulting in a net loss of $234.5 million.
Key Financial Highlights:
Record Revenue: Mohegan achieved its highest annual revenue in company history, reaching $1.9 billion.
Mixed Q4 Results: Q4 2024 saw revenue increase by 12% to $497.7 million, driven by continued growth in Mohegan Digital and revenue from the recently opened Mohegan Inspire. However, income from operations declined by 30%, and the company reported a net loss of $63.3 million.
Domestic Strength: Domestic operations continued to perform well, with revenue increasing 12% to $327.1 million and adjusted EBITDA growing 33% to $88.9 million.
International Challenges: International operations experienced increased revenue but also higher operating losses, primarily driven by the ongoing ramp-up of Mohegan Inspire.
Mohegan Digital Growth: Mohegan Digital continued its strong performance, with revenue surging 60% to $160.7 million.
Factors Affecting Profitability:
Mohegan Inspire Ramp-up Costs: The company attributed the decline in profitability to the significant costs associated with the opening of Mohegan Inspire, including pre-opening expenses and ongoing operational costs.
Low Table Hold: Lower-than-expected table game hold rates at Mohegan Inspire also impacted profitability.
Customer Contract Asset Impairment: A $11.9 million non-cash adjustment to the value of a customer contract asset at Niagara Resorts negatively impacted financial results.
Management Commentary:
Ari Glazer, Chief Financial Officer of Mohegan, stated, “Net revenues of $497.7 million increased $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 $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, an $11.9 million non-cash adjustment to the value of a customer contract asset at Niagara Resorts, and a full quarter of ilani management fees earned in the prior-year period, partially offset by strong growth in our Digital operations.”
Looking Ahead:
Despite the challenges faced in FY2024, Mohegan remains optimistic about its long-term growth prospects. The company continues to focus on expanding its digital offerings, optimizing operations at its existing properties, and capitalizing on the growing demand for gaming and entertainment experiences.
Industry News:
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