Mohegan Reports Record Revenue Thanks to Inspire Korea Ramp-Up
Posted on: August 9, 2024, 01:11h.
Last updated on: August 9, 2024, 01:27h.
The Mohegan Tribal Gaming Authority, operating commercially as Mohegan, formerly Mohegan Gaming & Entertainment, experienced record revenue in the third quarter of the company’s 2024 fiscal year that ended June 30, 2024.
Mohegan revealed in its quarterly report that the $504.2 million in operating revenue its domestic and international properties generated during the three months represented a record result. Mohegan’s quarterly net revenues surged 21.4% year-over-year.
The Connecticut-based firm owned by the Mohegan Tribe added that its Inspire Entertainment Resort at South Korea’s Incheon International Airport has generated net revenues of $101.1 million since its grand opening on March 5. Mohegan Digital experienced a 151% increase in net revenues.
“As I look across our enterprise, I feel confident about how our strategy is taking shape and I’m excited about our near and long-term prospects,” said Raymond Pineault, Mohegan CEO. “The combination of profitable growth in Digital, the ramp at Inspire since the grand opening in March, combined with the stability and resilience of our flagship, Mohegan Sun in Connecticut, highlights some of the important drivers for our growth in the present and future.”
Along with Inspire and Mohegan Sun, Mohegan owns and/or operates Mohegan Pennsylvania, Resorts in Atlantic City, Mohegan Casino at Virgin Hotels Las Vegas, and Fallsview and Casino Niagara properties in Canada’s Niagara Falls. Mohegan is winding down its management agreements in Las Vegas and Atlantic City by the end of the year. ?
Inspired Debut
Mohegan officials revealed during the quarterly filing that the company’s marketing efforts in the Seoul metro area are paying off. Visitation to the Inspire casino floor has increased each month since it opened, with visitor counts going from 15,803 visitors in March and 19,295 visitors in April to 24,781 gamblers in May and 27,411 patrons in June.
The first phase of the integrated resort cost $1.6 billion and brought 1,275 hotel rooms across three towers to Seoul’s primary air hub. A 15,000-seat arena, a year-round indoor water park in an enclosed glass dome, and an outdoor park complement the casino floor’s 150 live dealer table games, 374 slot machines, and 176-seat electronic gaming stadium.
The Mohegan financial summary reported that the Inspire casino generated gross gaming revenue (GGR) of $35.2 million from tables and $2.5 million from slots from April through June.
The resort’s hotel rooms were occupied nearly 71% of the time at an average rate of $190. Business at the Korean resort has only further improved, said Mohegan Chief Operating Officer Joseph Hasson.
When you look at July, the ramp continues and it is significant. We see it in tables, we see it in slots, and we see it across the board in nongaming revenues,” Hasson said.
The COO said the ongoing ramp-up of Inspire should soon bring the resort into operational profitability.
Record Revenue, Higher Costs
Though Mohegan never generated more revenue in a quarter than in Q3, the company said higher operating costs cut into profits. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 3.6% to $104.74 million.
Mohegan Chief Financial Officer Ari Glazer said the adjusted EBITDA downfall was primarily due to higher costs and opening expenses related to Inspire.
Mohegan’s financial report shows that the company increased its advertising spending by more than $20.7 million during the quarter. Its gaming operating costs ballooned by $42 million, as Inspire incentivized gamblers with an array of promotions.
Gambling at Inspire is reserved for foreigners, as residents of South Korea are prohibited from entering the casino space.
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