Mohegan, the US-based gaming operator that has recently launched its Incheon Mohegan INSPIRE integrated resort in South Korea, has announced a historic milestone with its highest quarterly net revenue to date, totaling $461.73 million, marking a significant increase of 13.8 percent compared to the previous year.
The company’s success can be attributed in part to the successful opening of its South Korean resort on March 5th, which has emerged as a key contributor to Mohegan’s overall financial performance.
In a breakdown of its financial results, Mohegan revealed that its international segment generated approximately $108.07 million in net revenue, despite recording a loss of $39.49 million. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for this segment stood at negative $16.58 million, primarily attributed to operating costs associated with the launch of Mohegan INSPIRE and a non-controlling interest adjustment related to Niagara Resorts.
Additionally, Mohegan’s Digital segment made significant strides, with revenues surging by nearly 71 percent to $38.77 million, according to Asia Gaming Brief. Although net income from the segment increased by 11.6 percent to $20.25 million, EBITDA also rose by the same margin, reaching $20.23 million. Overall, gaming revenue for the company exceeded $305.4 million, marking a notable increase of nearly 7 percent compared to the previous year.
Great Success in South Korea
Mohegan Tribal Gaming Authority’s latest venture, the Mohegan INSPIRE integrated resort in South Korea, recorded net revenues of $35.9 million in the first quarter of 2024, according to Inside Asian Gaming. Despite an Adjusted EBITDA loss of $24.1 million for the quarter, attributed to initial operating expenses including labor and marketing costs, the company remains optimistic about achieving EBITDA break-even in the near future.
During the earnings call, Mohegan’s Chief Operating Officer, Joe Hasson, expressed confidence in the resort’s performance, noting positive trends observed in April and May. Hasson highlighted the imminent approach of breakeven EBITDA on a month-to-month basis, underscoring the resort’s promising trajectory during its ramp-up phase. Asked about the areas where the ramp-up was most evident, Hasson cited positive momentum in both the foreigner-only casino and non-gaming segments, emphasizing the favorable reception from consumers.
Mohegan’s President and CEO, Ray Pineault, echoed this sentiment, noting that the resort had garnered positive feedback not only from the local market in South Korea but also from regions including China, Japan, and Taiwan. Pineault expressed optimism about the widespread appeal of the resort and its potential for continued success across the region.
Mohegan Gaming and Entertainment started out in 1996 with the opening of Mohegan Sun, a venue that has since then managed to become one of the top land-based casinos in the entire world. The company also owns and operates Mohegan Casino Las Vegas, Mohegan Pennsylvania, Mohegan Sun Foxwoods East Windsor along with a brand new iGaming platform in Pennsylvania.