Mohegan Gaming & Leisure has launched its monetary outcomes for the fourth quarter and monetary yr ending September 30, 2024, highlighting robust income development whereas grappling with substantial liquidity and debt challenges. The corporate has achieved record-breaking internet revenues but additionally faces crucial hurdles tied to its South Korean mission and upcoming debt maturities.
The corporate reported $497.7 million in internet revenues for the fourth quarter, marking a 12% improve from the prior yr, pushed by development in Mohegan Digital and the just lately launched Mohegan INSPIRE resort. Consolidated annual revenues reached a document $1.89 billion, up 13% from fiscal yr 2023. Nevertheless, adjusted EBITDA for the fiscal yr decreased by $50.9 million to $349 million, primarily on account of increased working prices related to Mohegan INSPIRE and changes associated to asset valuations at Niagara Resorts.
Home operations noticed notable enchancment, with fourth-quarter revenues rising by $36.2 million to $327.1 million, fueled by strong non-gaming actions corresponding to leisure and meals providers. Equally, Mohegan Digital’s annual revenues surged by $60.1 million, reflecting continued enlargement in its Connecticut operations.
Challenges with Worldwide Ventures
Regardless of these successes, Mohegan’s worldwide operations current vital challenges. The Mohegan INSPIRE built-in resort in South Korea generated $62.2 million in fourth-quarter revenues however is but to realize profitability 9 months after its December 2023 opening. Moreover, the Korean Time period Mortgage of $275 million, related to this mission, has entered default standing on account of unmet monetary covenant necessities. Inside Asian Gaming identified that Mohegan additionally faces a looming $704 million credit score facility maturity in November 2025, elevating considerations about its capability to satisfy these obligations with out refinancing.
The corporate’s Annual Report underscores the potential dangers if lenders train rights over pledged collateral, together with MGE Korea Restricted’s stake in Mohegan INSPIRE. CEO Raymond Pineault remarked on the corporate’s strategic focus, emphasizing the necessity for refinancing and liquidity options to navigate these obstacles.
Broader Monetary Issues
Mohegan’s broader monetary panorama reveals combined outcomes. Company operations recorded a $13.2 million loss in adjusted EBITDA for the quarter, reflecting elevated labor prices and losses on truthful worth changes tied to its Korean ventures. Internet earnings for the corporate’s home operations rose to $66.7 million within the fourth quarter, pushed by enhanced gaming and non-gaming revenues, however these features have been offset by worldwide losses totaling $48.1 million for a similar interval.
Wanting forward, Mohegan’s administration has laid out plans to refinance its senior secured credit score facility and different liabilities. Nevertheless, the success of those efforts stays unsure and hinges on favorable market situations.
Mohegan’s 2024 monetary outcomes replicate an organization balancing historic income achievements with urgent monetary dangers. Whereas home and digital development underscore its operational energy, the challenges tied to its worldwide ventures and debt obligations current appreciable uncertainties. Stakeholders will intently monitor Mohegan’s efforts to safe refinancing and preserve liquidity within the coming months.
