Mohegan Tribal Gaming Authority reported net revenues of US$461.7 million for the three months to March 31, 13.8-percent higher than in the prior-year period. The growth was supported by the group’s Mohegan Inspire Entertainment Resort, the newly-opened complex – with a foreigner-only casino – at Incheon, South Korea.
The company, which trades as Mohegan Gaming & Entertainment, posted adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) of just under US$84.0 million, down 17.8 percent year-on-year, according to a Thursday update.
Net loss for the first three months of 2024 stood at nearly US$46.1 million, up from a US$9.6-million loss a year earlier.
Aside from Mohegan Inspire (pictured), the group also has operations in the U.S. and Canada.
“Net revenues of US$461.7 million increased US$55.9 million compared with the prior-year period, primarily due to continued growth in Mohegan Digital and revenue from Mohegan Inspire,” said Ari Glazer, Mohegan’s chief financial officer, in prepared remarks. Mr Glazer assumed the CFO position on May 1 this year.
“Consolidated adjusted EBITDA of US$84.0 million decreased US$18.2 million compared with the prior-year period, primarily due to operating costs related to the opening of Mohegan Inspire and non-controlling interest adjustments at Niagara Resorts,” he added, referring latterly to a property that the company runs in Canada.
Mohegan Inspire opened its non-gaming facilities on November 30, followed by its foreigner-only casino on February 3. It had an official launch for the property on March 5.
The complex has 1,275 hotel rooms, 11 restaurants, and a 15,000-seat arena.
The casino resort at Incheon recorded net revenues of US$35.9 million in the first three months of 2024, according to Thursday’s announcement.
The property’s adjusted EBITDA were negative to the tune of US$24.1 million, which Mohegan’s management said was primarily due to opening expenses related to labour and marketing costs.
Joe Hasson, freshly-appointed interim chief operating officer at Mohegan, said on a Thursday conference call with analysts, that Mohegan Inspire was still in its ramp-up phase. “But we are pleased with the trends we’re seeing in April and May,” he stated.
“We are encouraged by the ramp [at Mohegan Inspire], and it is occurring both in the casino and non-gaming segments of the business,” said Mr Hasson.
“What we see right now is breakeven EBITDA on the near horizon measured month-to-month,” added the COO. “Of course, during the initial ramp, like any resort of that calibre … we have to spend both labour and marketing dollars … but again, near-term horizon, we see on a month-to-month basis breakeven approaching in the immediate future.”
The parent company said new amenities at Mohegan Inspire, including an “innovative food court concept”, a digital interactive art attraction, and an amusement arcade are expected to open in the second quarter of 2024, with a few other to follow in the third quarter this year.
