Net income attributable to Mohegan Tribal Gaming Authority fell 14.8 percent year-on-year in the financial third quarter ending June 30, to US$50.6 million, it announced on Thursday.
That was on quarterly net revenues that were almost flat year-on-year, at US$415.4 million. Gaming revenues for the three months were US$281.9 million, down 4.1 percent year-on-year.
The United States-based entity – trading as Mohegan Gaming – is developing a resort (pictured) with foreigner-only casino at Incheon, South Korea. The first phase of Inspire Entertainment Resort has been described as a US$1.6-billion project.
Ray Pineault, Mohegan Gaming’s chief executive, said during the group’s earnings conference call on Thursday, that it was still expected that non-gaming amenities could open there in the calendar fourth quarter this year.
“There would have to be something very abnormal to prevent us from achieving that goal,” the CEO told analysts. He added that a recent typhoon affecting South Korea had been “non-impactful” in terms of the project timetable.
Inspire Entertainment Resort’s president, Chen Si, recently told GGRAsia that it was hoped the on-site casino could open by Chinese New Year, which starts on February 10 next calendar year.
On Thursday’s call, Mr Pineault was asked about the casino timing. He said he couldn’t give any guarantees, as it “is not in our control”.
He stated: “As we’ve said from the get-go, we’ve got to open the hotel and the non-gaming amenities, to get our rating on the hotel, to get the casino licence.”
The CEO said: “Obviously, we hope to make it as short a period of time as possible. We don’t control that…. We do have some target dates that we’ve been communicating with the [South Korean] agencies, and trying to narrow those down.”
An earnings deck presentation said “project completion” on Mohegan Inspire was “approximately 89 percent at the end of July”.
That presentation outlined that the multi-phase scheme would have – as well as a foreigner-only casino – three hotel towers totalling 1,200 hotel rooms; a 15,000-seat arena and convention space; dining, shopping and entertainment facilities; an indoor water park; and an outdoor park for families.
It noted the property would be “comparable in size and scale” to the group’s Mohegan Sun complex in the U.S. state of Connecticut.
Carol Anderson, Mohegan Gaming’s chief financial officer, said on the call that the group’s total debt as of June 30 – including capital leases and excluding unamortised debt issuance costs and discounts – was US$3.1 billion, up US$218.7 million from the March quarter.
She stated: “The increase primarily relates to the financing activities from the development of Mohegan Inspire, including additional draws under the project finance facility.
“As previously announced, we agreed to make an additional investment of up to KRW155 billion, or approximately US$119 million in the aggregate, to fund costs to complete Mohegan Inspire.”
The CFO said approximately KRW30 billion, or US$24 million, was contributed in June, and “we anticipate making the remaining investment of up to KRW89 billion, or approximately US$67 million, in the near term”.
Expenditure totalled US$273.1 million for the reporting quarter, with “the majority related to developing costs of Mohegan Inspire,” stated the finance boss.
