Morgans fourth-quarter earnings climbed by 7.5%, propelling its full-year combined net profit to an all-time peak.
Morgan brought in $444.3 million in revenue during the final quarter of 2023, boosting its full-year consolidated net income to a record $1.67 billion. Morgan also produced $399.9 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the entire year, second only to the $403.9 million generated in the entirety of 2022, marking the second-highest level in its history.
Adjusted EBITDA remained robust despite a $4.7 million interest impact stemming from the Morgan Niagara bond conversion and related transactions.
Morgan’s chief executive, Raymond Pinel, expressed optimism about the thriving state of Morgan’s gaming operations and highlighted the company’s diversification initiatives, which are being strengthened by new property openings.
“Our adjusted EBITDA for the 2023 fiscal year was $399.9 million, the second highest in our 27-year history, while fiscal 2022 adjusted EBITDA was $403.9 million, the highest to date,” Pinel stated.
“We continue to observe growth in our digital gaming operations, and our diversification efforts will further drive strong performance for Morgan with the soft opening of Morgan INSPIRE on November 30.”
Earlier this year, Pinel shared his perspectives with iGB on how Morgan is achieving omnichannel success.
In the third quarter, ending on September 30th, Mohegan Sun’s total earnings were $224.2 million. This represented a 5.2% decrease from the same period in the previous year, which the company attributed to a decline in gaming activity and table win rates.
Mohegan Niagara generated $88.6 million in net revenue during the fourth quarter, a 4.9% increase. Mohegan Pennsylvania generated $62.7 million, down 2.9%, while Mohegan Digital generated $50 million, a $44.2 million increase.
This was due to an accounting adjustment that resulted in a $32 million increase in both earnings and expenses. This additional amount is related to the way Connecticut mandates online casinos and sports betting to pay the state.
Revenue from management, development, and other departments totaled $34.4 million, more than doubling to 116.6%. Revenue under “other” decreased 41.7% to $3.8 million.
Mohegan reported a net loss for the fourth quarter.
Gaming accounted for the majority of revenue, at $297.8 million this quarter. The remaining net revenue was generated from food and beverage, hotel, retail and entertainment, and other sources.
Total operating costs and expenses for the quarter increased 13.3% to $396.2 million, resulting in an operating profit of $48 million. Gaming generated the highest level of operating costs, at $174.8 million. Advertising, general and administrative expenses were $79.2 million, while food and beverage expenses exceeded $32.7 million.
Other expenses totaled $60.6 million, primarily consisting of $54.6 million in interest expense. This resulted in a pre-tax loss of $12.5 million.
A tax deduction of $6.3 million resulted in a total net deficit of $18.8 million, a significant shift from the net gain of $29.6 million during the same timeframe last year.
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