Mohegan Tribal Gaming Authority reported net sales of $461.7 million in the three months to March 31, up 13.8 percent year-on-year. The growth was supported by the group's Mohegan Inspire Entertainment Resort, which has a casino dedicated to foreigners in Incheon, South Korea.
The company's adjusted net income before interest, taxes, depreciation and amortization (EBITDA), which trades as Mohegan Gaming and Entertainment, fell 17.8% year-over-year to just under $84 million, according to an update on Thursday.
Net loss for the first three months of 2024 was approximately $46.1 million, up from a loss of $9.6 million a year earlier.
In addition to Mohegan Inspire (pictured), it also operates operations in the United States and Canada. 동행복권파워볼
"Net income of $461.7 million increased by $55.9 million year-over-year, primarily due to the continued growth of Mohegan Digital and sales of Mohegan Inspire," Ari Glazer, Mohegan's chief financial officer, said in prepared remarks. Glazer took over as CFO on May 1 this year.
"Consolidated Adjusted EBITDA of $84 million decreased by $18.2 million year-over-year primarily due to operating expenses related to the opening of Mohegan Inspire and non-dominant interest adjustments at Niagara Resorts," he added.
Mohegan Inspire opened its non-gaming facility on Nov. 30, followed by its foreigner-only casino on Feb. 3. There was an official launch for the facility on March 5.
The complex has 1,275 hotel rooms, 11 restaurants, and a 15,000-seat stadium.
The casino resort in Incheon posted net sales of $35.9 million in the first three months of 2024, according to Thursday's announcement.
Adjusted EBITDA for the property was negative at $24.1 million, which Mohegan's management said was primarily due to opening costs related to labor and marketing costs.
Joe Hatson, Mohegan's interim chief operating officer, said on a conference call with analysts on Thursday that Mohegan Inspire was still in the hike phase. "But I'm pleased with the trends that are coming up in April and May," he said.
"I'm encouraged by the ramp [of Mohegan Inspire], and this is happening both in the casino and non-game sectors," Hathson said.
"What we're seeing right now is breakeven EBITDA at close range, as measured monthly," the COO added. "Of course, during the initial upturn, we need to spend both labor and marketing costs, as do the means of these calipers, but in the near term, we see monthly breakeven looming in the near future."