US tribal casino operator Mohegan said overnight that its recently opened Korean integrated resort, Mohegan Inspire in Incheon, has generated net revenues of US$101.1 million since opening late last year but noted both visitation and volumes are showing strong month-on-month growth.
The contribution of Inspire helped push the company to group-wide revenues of US$504.2 million for the three months to 30 June 2024, up 21.4% year-on-year and its highest quarterly revenue result in history.
This was also the first quarter in which Mohegan has reported gaming and non-gaming results for its Korean resort, revealing net table win of US$35.2 million and net slot win of US$2.5 million. Hotel occupancy reached 70.8% with an average daily rate of US$190.
Notably, casino visitation has shown solid sequential growth every month since its 3 February launch, from 10,771 casino visitors in February to 15,803 in March, 19,295 in April, 24,781 in May and 27,411 in June.
Mohegan’s Chief Operating Officer Joseph Hasson also revealed during Mohegan’s earnings call that the trend had continued into July.
“When you look at the month of July, the ramp continues and it is significant,” he said. “We see it in tables, we see it in slots and we see it across the board in non-gaming revenues and what that does is puts us very close to profitability as we continue this ramp. It’s very encouraging compared to what’s behind it in the [March] quarter or dating back to the opening.”
Mohegan CEO Ray Pineault added that surpassing US$100 million in revenues was “one of the many important milestones” as the property continues to ramp.
“I am confident Inspire will be an increasing contributor for years to come, delivering significant cash flow and value to our company and stakeholders,” he said.
Consolidated Adjusted EBITDA of US$104.7 million for the Mohegan group was US$3.9 million lower year-on-year compared with the June 2023 quarter, primarily due to operating costs related to the opening of Mohegan Inspire, with the company explaining that promotional costs in Korea were currently elevated as it looks to showcase its offerings to the region.
“One of our key focuses is making sure we give the business the opportunity to be previewed by guests who are either expat locals in South Korea or anyone who is in the Pacific Rim where we have the opportunity to showcase the magnificence of that resort, so we are spending appropriately to do that,” Hasson said.
“There will come a time when we can dial that spending back in a manner that is commensurate with us having showcased it and previewed it. The ramp will tail at some point of time and we will react appropriately at that time.”
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