Net revenues at casino operator Mohegan Gaming Tribal Gaming Authority rose 4.6 percent year-on-year in the fiscal first-quarter to December 31, to US$425.2 million.
The US$18.6-million improvement was “primarily due to continued growth in Mohegan Digital and non-gaming revenues from Mohegan Inspire,” the group’s newly-opened South Korea casino resort, said Carol Anderson, chief financial officer (CFO), in a Thursday announcement. The organisation trades as Mohegan Gaming.
The parent’s quarterly net loss was stable year-on-year, at US$97.0 million.
The group – which also runs casinos in the United States and Canada – saw its quarterly consolidated adjusted earnings before interest, taxation, depreciation and amortisation fall 21.8 percent year-on-year, to US$79.0 million.
An earnings deck issued with the results said the change was attributable to factors including “operating costs associated with the opening of Mohegan Inspire”; as well as “non-controlling interest adjustments at Niagara Resorts,” a Canadian venue it runs; and “low table hold at a few” of its properties.
Mohegan Gaming had total debt of just over US$3.34 billion as of December 31. The figure included just over US$933.9 million in aggregate from respectively, a credit facility, loan, and convertible bonds, for the South Korea project.
A recent credit opinion update from Moody’s Investors Service Inc, said Mohegan Tribal Gaming Authority’s non-investment grade credit rating of ‘Caa1’ with a ‘stable’ outlook reflected its “very high leverage, significant debt maturities in the next two years and large annual cash distributions” to the Mohegan Tribe.
Mohegan Inspire opened its non-gaming facilities on November 30 – including its 15,000-capacity Inspire Arena (pictured) - followed by its foreigner-only casino on February 3, outside the reporting period. It will have an official launch for the property on March 5.
Ray Pineault, chief executive of Mohegan Gaming, was quoted as saying in the fiscal first quarter earnings release: “We are thrilled that Mohegan Inspire has received its five-star hotel rating in January and opened the casino on February 3.”
He added: “The five-star rating is a testament to our pursuit for excellence and commitment to providing world-class experiences. We are looking forward to more amenities coming online in the ensuing months.”
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