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    Saturday, May 25, 2024

    Mohegan posts highest quarterly earnings in its history

    Mohegan, the gaming and entertainment company that owns Mohegan Sun, reported this week that it raked in $461.7 million in net revenue in the quarter that ended March 31, the highest quarterly total in company history.

    The net revenue was up 13.8% over the same period last year.

    Company executives, in a conference call with investors Thursday, attributed much of the increase to continued growth in Mohegan’s digital division and to Inspire, its new integrated resort in Incheon, South Korea, which generated $35.9 million in net revenue.

    Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, declined 17.8% to $84 million, primarily due to Inspire operating costs, Ari Glazer, Mohegan’s chief financial officer, said.

    Inspire’s foreigners-only casino opened Feb. 3, followed by the resort’s grand opening March 5.

    In January, February and March, the second quarter of Mohegan’s fiscal year, Mohegan Digital generated $38.8 million in net revenue, a year-over-year increase of 70.8%. The division, which operates online gaming in Connecticut and in Ontario, Canada, has launched in Pennsylvania since the end of the quarter.

    Mohegan’s domestic casinos ― Mohegan Sun, Mohegan Pennsylvania in Wilkes-Barre, Pa., and Mohegan Casino at Virgin Hotels Las Vegas ― posted $300.4 million in net revenue in the quarter, a 1% increase over the previous year. Mohegan Sun accounted for $226.1 million in net revenue, a marginal increase over last year.

    The company’s two casinos in Niagara Falls, Ontario, posted $72.2 million in net revenue, up 2% over last year.

    Two days before Thursday’s earnings call, Mohegan announced it will turn over management of Mohegan Casino at Virgin Hotels Las Vegas to the hotel operator by the end of the year. During the call, Ray Pineault, Mohegan’s president and chief executive officer, briefly mentioned the move.

    “Mohegan was proud to be the first Native American tribe to operate in the Las Vegas Strip corridor,” he said. “And now that we've completed our objectives to launch the casino and its day-to-day operations, we believe this is a natural progression for the casino to be managed in-house.”

    Mohegan Casino at Virgin Hotels Las Vegas opened in 2021.

    Mohegan will relinquish management of Resorts Casino Hotel in Atlantic City by the end of the year while retaining a 10% ownership interest in Resorts. Its seven-year contract to manage the Cowlitz Indian Tribe’s ilani Resort Casino in Ridgefield, Wash., will expire in July.

    Foxwoods Resort Casino posted a quarterly report online Friday that showed its net revenue for the period ending March 31 was $161 million, a 4% increase over the same period last year. While Foxwoods’ gaming revenue was essentially flat, the Mashantucket Pequot-owned casino’s nongaming revenue was up 21.3%.

    Foxwoods’ EBITDA of $30.7 million was up 8.1%.

    b.hallenbeck@theday.com

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