The Mohegan Tribal Gaming Authority has reported a 4.6% increase in revenue for the first quarter, with a total revenue of $425.2 million. This growth has been attributed to the expansion of the digital business and non-gaming revenue from the new Mohegan Inspire resort.
The Mohegan Inspire resort in South Korea recently had a soft opening, offering visitors access to certain amenities including three hotel towers, over 10 restaurants, and a multi-purpose arena. However, the costs associated with this opening, as well as non-controlling interest adjustments at Niagara Resorts and low table hold at some properties, resulted in a net loss for the quarter.
In terms of segmental performance, gaming revenue was up 1.7% to $285.7 million, while food and beverage revenue climbed 13.8% to $43.7 million. The Mohegan Sun property in Connecticut remains the main source of revenue, though revenue for Q1 was down 4.6% due to lower gaming volumes and table hold.
The digital business was a star performer in Q1, with a 224.1% revenue increase to $36.2 million. However, operating costs for the quarter reached $393.3 million, a 16.9% increase from the previous year. This, coupled with a pre-tax loss of $96.8 million and a net loss of $97.0 million, reflects a significant decrease compared to the previous year’s profit.
Overall, despite the revenue increase, higher spending, particularly related to the opening of the Mohegan Inspire resort, has led to a net loss for the Mohegan Tribal Gaming Authority in the first quarter.