iGB examines the financial performance of Mohegan Casinos, Century Casinos, and SJM Holdings.
Mohegan Tribal Gaming Authority reported a record-breaking quarterly revenue, but earnings dropped during the quarter when its Mohegan Inspire South Korea resort was opened.
The net income of the group was $461.7m ($428.3m/PS368,8m). This is a 13.8% increase from last year. It was an increase of 13.8% on a year-on-year basis.
The net revenue of its US domestic operations was relatively flat, at $300.4m. This represents a 1.0% increase year-on-year. Mohegan Digital grew at a rate of just over 70% but only generated $38.8m in revenue.
Net revenue of $108.1m for International operations increased 52.8% from the previous year period. Mohegan Inspire was the main driver, a $1.6bn resort that opened on Yeongjong Island 5 March.
Mohegan’s gaming revenue grew 7.0%, to $305.4m.
Mohegan’s net loss was $44.5m despite operating costs increasing by 25,7%, to $430.5m.
The adjusted EBITDA fell 17.8% to $84.0m from $102.1m during the same time period of 2023. The Domestic segment was stable, but the International segment had a negative $16.6m.
The main reason for this was the operating costs associated with opening Mohegan Inspire, and an adjustment of $5.0m in non-controlling interests related to Niagara Resorts. Mohegan says that excluding the Niagara figure allows for a better comparison between prior periods.
Century’s challenging start in 2024
Century Casinos has described 2024 as a challenging year, facing construction delays and closing three casinos.
The net operating revenue for the quarter ended 31 March was 136.0 million dollars, an increase of 25 percent compared to last year.
The US revenues grew by 45%, to $96.0m. Canada also saw double-digit increases. The Polish market, however, saw a 15% drop to $21.6m due to temporary closings caused by licensing delays. Century expects that the venues will reopen by Q3 of 2024.
Further, disruptions caused by severe weather in the US affected its US casino operations. The cash payments for $12.2m of taxes related to its September 2023 lease-back and sale of Canada properties, a one-time principal payment of $3.4m and $18.4m of property and equipment purchases reduced its total cash balance.
The earnings from operations decreased by 55% year on year to $8.3m. Century Casinos is building a land-based gaming facility with 38 rooms in Caruthersville Missouri. Project costs are estimated at $51.9m. The project is on schedule and within budget.
Erwin Haitzmann, Peter Hoetzinger and the co-chief executive officers said that their positive outlooks for 2024’s second half into 2025 remain unchanged. The increased capital expenditures on our properties are expected to stop over the summer.
By 2025 all our casinos should be fully functional and no construction interruptions will occur. The Riverview hotel, at Century Casino Cape Girardeau in Missouri, has also exceeded our expectations.
SJM revenues surge thanks to Macau revival
SJM Holdings, a Macau-based company, saw its Grand Lisboa Palace resort and Grand Lisboa Resorts grow by 73.0% in net revenue year-on-year.
The gamblers have returned in droves to Grand Lisboa. Its occupancy rate is 98.3%, up from 85.3% during the same time period in 2013. Macau has made a strong start to 2024, with gambling revenue reaching MOP19.50bn (PS1.02bn/EUR2.25bn/$2.42bn) in March, the joint highest monthly total since before the pandemic.
Hong Kong-headquartered SJM generated HK$6.9bn ($882.9m/EUR819.1m/PS705.2m) during the three months to 31 March. The net gaming revenue increased by 74.5%, to HK$6.5bn. Revenue from hotel, catering, retailing, leasing, and other related services increased by 54.6%, reaching HK$456m.
The Grand Lisboa Palace’s and Grand Lisboa’s total revenue grew almost HK$1bn, to HK$1.4bn HK$2.0bn.
Adjusted EBITDA in Q1 2024 reached HK$864m compared to HK$31m the previous period. Grand Lisboa had a figure of HK$535m compared to HK$156m for Q1 2023. Grand Lisboa Palace jumped up from a negative HK$230m into a positive HK$88m.
