Mohegan CEO Raymond Pineault announced digital business revenues to investors, noting a net income of $41.9 million this quarter due to growth in Connecticut operations, marking a 151.3% increase year-on-year (2023: $16.7 million).
However, Pineault noted that the performance was impacted by a $6 million iGaming tax compensation from iGaming partners, "iGaming partner tax compensations were accounted for increased net revenue and expenses this year."
Digital business revenue grew 100.1% to $23 million (2023: $11.5 million), with net income increasing 99.1% to $23.1 million (2023: $11.6 million), and adjusted EBITDA reaching $23.1 million (2023: $11.6 million), "as Mohegan Digital continued to experience strong growth."
In terms of management, development, and other businesses, net revenues were $22.5 million (2023: $21.5 million), "mainly due to increased management fees and intercompany entertainment revenue, partially offset by last year's Mohegan INSPIRE development fees earned during the same period."
The sector's operating revenue was $11.2 million (2023: $16.5 million), with a net loss of $9.7 million (2023: net income of $6.2 million), and an adjusted EBITDA of $11.2 million (2023: $16.4 million), due to "last year's earned Mohegan INSPIRE development fees."
Corporate and other income was $27,000 (2023: $10,000), with an operating loss of $10.8 million (2023: $11.6 million), and a net loss of $70.9 million (2023: $25.9 million) due to “losses resulting from fair value adjustment losses influenced by changes in the estimated values of stock warrants and put options related to its periodic loans in South Korea.”
The sector's adjusted EBITDA loss was $9.7 million (2023: loss of $10.4 million), primarily due to "corporate labor savings."
Pineault said: "Looking at our corporation, I am confident in the shaping of our strategy and excited about our near and long-term prospects.
“The profitability growth in digital business, the continual ascent of INSPIRE since its grand opening in March, coupled with the stability and resilience of our flagship Connecticut Mohegan Sun, highlight some of the key drivers for our growth now and in the future.”
