Mohegan reported its highest annual net revenue from properties and digital operations in fiscal year 2023. The growth of $81.7m from last year makes this the highest net revenue the Tribal operator has ever earned in its 27-year history. It was also the company's second-highest adjusted EBITDA.
The meeting was chaired by four Mohegan executives, who elaborated on Thursday's results before giving time for a Q&A. The meeting also emphasised early on that it would contain forward-looking statements that may not reflect future events.
In his opening comments, Mohegan Tribal Councilor and Treasurer Thayne D. Hutchins Jr spoke about the launch of Mohegan Inspire, the company's new South Korea venture which had its soft opening on 30 November. He also noted the expansion of the company's digital business, which will help in the organisation's continued growth.
Hutchins Jr welcomed the company’s new VP, Capital Markets, Investor Relations and Corporate Treasurer Jeoffrey Welles, to the company’s leadership team (“sounds like he’s going to be busy!” commented Hutchins Jr).
Turning to Ray Pineault, the Mohegan CEO began by once again highlighting the financial successes of Mohegan in 2023. Revenue was up $81.7m to $6.17bn while adjusted EBITDA was $399.9m, its “second-highest ever total.” The successes of Connecticut and Canada were also mentioned in the opening statement, as were the company’s attempts to gain a lucrative New York land-based casino licence.
He also expressed gratitude for the work performed by CFO Carol Anderson, who will be leaving the company in March 2024. “Her leadership, commitment, knowledge… and attention to detail are beyond reproach and I personally will miss Carol as part of our team,” he said. A search for Anderson’s replacement is currently underway.
Following his opening comments, Pineault, Anderson and COO Jody Madigan broke down the results for FY23. You can find a summary of the results reported by Gaming America.
“Her leadership, commitment, knowledge … and attention to detail are beyond reproach and I personally will miss Carol as part of our team" - Mohegan CEO Ray Pineault on the outgoingCFO Carol Anderson
After the breakdown, calls opened to the floor. While questions covered a wide range of topics, Mohegan Inspire came up on several occasions. One question by a Deutsche Bank representative asked: Could you comment a little bit on the revenue guidance for Inspire Korea and if you still expect the property to be cash-flow positive in 2024?
Madigan took the question. He began by commenting on how he attended the Inspire opening and “could not have been more thrilled at how it went.” Despite not offering gaming as of yet, the venue offers hotel occupancy, food and beverage and on opening week played host to two large events; a banquet event on opening night and the Melon Awards two days later. A 15,000-seat show featuring 30 K-pop artists Madigan compared to a Korean version of the Grammys.
After the weekend, the venue has seen expected hotel occupancy and footfall, with good food and beverage covers to boot.
“We’re not fully ramped,” said Madigan. “We’ve got a couple more things coming in early Q1, calendar Q1 of ‘24 on the gaming side and then shortly thereafter there’ll be some additional non-gaming, probably Q2 2024.”
Later in the meeting, it was confirmed that Mohegan intends to get its South Korean gaming license in Q1 2024.
“I do believe that we will be cash-flow positive by the end of the year” - COO Jody Madigan
“We’re as excited as we ever have been about the project,” Madigan continued. “To answer your question, I do believe that we will be cash-flow positive by the end of the year.”
Another question later in the call asked, “[South Korea] had a national tourism strategy meeting last week and they referenced the possibility of lifting a ban on certain forms of public promotion of casinos. Could elaborate on the ban itself and what the potential benefit would be?”
Madigan said, “We definitely are keeping our ear to the ground on everything to do with domestic gaming in Korea. It would obviously be a game-changer for the property if we were ever allowed to either promote or allow domestic gaming. “I would say trust in the fact that we are paying attention to, and trying to help how we can in the idea of domestic gaming happening in Korea.”
Pineault echoed this statement, saying that although the projection of the venue was based on it being a ‘foreigners only casino,’ “I’m confident in the performance of the property. But domestic gaming… is something that we would support with the support of the government in doing it appropriately.”
