Mohegan Tribal Gaming Authority’s recently opened Korean integrated resort, Mohegan INSPIRE, recorded net revenues of US$35.9 million in the first three months of 2024, with the company outlining its confidence of reaching EBITDA break-even in the months ahead.
Releasing its 1Q24 financials overnight, Mohegan revealed an Adjusted EBITDA loss of US$24.1 million in Korea for the quarter, impacted by opening expenses linked to labor and marketing costs.
However, it also outlined a positive ramp trend in recent months, particularly since the opening of Mohegan INSPIRE’s casino on 3 February and the property’s Grand Opening ceremony on 5 March.
“The resort is still in its ramp up phase but we are pleased with the trends we’re seeing in April and May,” explained Mohegan’s Chief Operating Office, Joe Hasson during the company’s earnings call.
“What we see right now is breakeven EBITDA on the near horizon measured month to month. Of course, during the initial ramp, like any resort of that caliber, we have to spend both labor and marketing dollars in order to give the ramp and the launch the right umph and the right velocity, but again, near-term horizon, we see on a month-to-month basis breakeven approaching in the immediate future.”
Asked to provide some color around where the ramp was being seen most clearly, Hasson replied that there was positive momentum in both the foreigner-only casino and non-gaming segments, although he did not break down the exact revenue mix.
“It’s a bit of a favorable blur as we see the receptive reactions from consumers that are finding their way to that integrated resort, so as we look forward, if we are on a ramp similar to what we’ve seen so far, we are very confident about being able to reach our targets.”
Mohegan President and CEO Ray Pineault added that the positive reception was being seen “not only from the local market and in South Korea, but we’re actually seeing receptivity in China and Japan and Taiwan as well. We’re really encouraged by the visitation we’re seeing across the region.”
Group-wide, Mohegan reported the highest quarterly net revenue in its history at US$461.7 million, up 13.8% year-on-year due primarily to the addition in revenue from Mohegan INSPIRE and continued growth in its US digital segment.
However, consolidated Adjusted EBITDA decline by 17.8% to US$84.0 million, also due to operating costs related to the opening of Mohegan INSPIRE.
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