https://suministroroel.com/template/a/www.industrysuper.com
 
Skip to Main Content
 

Inspire Korea Depresses Mohegan FY24 Operating Results, Loan Default Possible


Inspire Korea isn t off to the start Connecticut-based Mohegan had hoped.

Inspire Korea Mohegan casino revenueBusiness hasn t exactly been strong at Inspire Korea, Mohegan s $1.6 billion investment at Incheon International Airport, since it held its grand opening in March 2024. Most hotel rooms are seen dark in this photograph. (Image: X)

, the tribal and commercial gaming firm controlled by the Mohegan Tribe, held its grand opening of the first phase of the Inspire Entertainment Resort, a $1.6 billion undertaking, last March. In Mohegan s full-year 2024 fiscal year financial report, company officials detail that the integrated resort casino destination at Incheon International Airport has largely underwhelmed.

In the fourth quarter, Inspire resort-wide operations generated net revenue of just $62.2 million. For the year, net revenues totaled only $163.3 million.

Ari Glazer, Mohegan s chief financial officer, said Inspire has encountered higher-than-expected operating costs related to the resort s opening and operational build-up, which includes a costly marketing campaign across South Korea and Asian markets. The casino has also underperformed, with Glazer citing low table hold.

The Inspire casino, as are most casinos in Asian markets, relies more on table games and baccarat than U.S. casinos where slot machines reign supreme. The gaming space at the Korean resort includes 150 live dealer table games, a 176-seat electronic table gaming stadium, and 373 slots.

Inspire Drags

Mohegan achieved its highest in company history at more than $1.88 billion, a 13% year-over-year surge. Along with the opening of Inspire, Glazer credited continued growth in Mohegan Digital and strong non-gaming revenues at U.S. resorts and in Canada for the $216.7 million increase.

Despite the record revenue, Mohegan reported that consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) went from a profit of $34.5 million in fiscal year 2023 to a loss of more than $36.1 million in FY24 a difference of $79.6 million.   

Inspire was to blame. The company additionally warned that unless it finds new lenders in South Korea, it could default on its Korea Term Loan.

The company has upcoming debt maturities and faces an imminent debt covenant violation under its Korean Term Loan facility, which taken together present significant risks to investors, the financial presentation warned of default.

Inspire adjusted EBITDA was a loss of $49.5 million.

Operational Difficulties 

By all accounts, Inspire so far seems to be a losing bet for Mohegan. Its potential loan default hints at deeper operational issues.

The Inspire casino won $94.7 million on its table games and just $6.8 million on its slots during the 2024 fiscal year. Mohegan s flagship property in Connecticut won almost $400 million on its slots and $189.2 million on its tables during the same period.

Mohegan s two casinos in Canada Fallsview Casino Resort and Casino Niagara, reported gross gaming revenue (GGR) of $210.9 million. Even Mohegan Pennsylvania in the remote Pocono Mountains generated gross gaming revenue of $196.6 million.

Inspire s hotel occupancy for the year was just 69%. The data could suggest that Mohegan s $1.6 billion bet that foreigners arriving in Incheon and Seoul for business would be willing to stay 45 minutes outside of downtown Seoul to gamble.

Incheon remains a foreigner-only casino. South Koreans can only at , a government-owned resort in a remote area of the Kangwon Province.

What's your question?

warning Your question will be sent directly to the fund you select

Talk to someone who knows how to help

warning Your question will be sent directly to the fund you select

  • You will be called back at the next available opportunity.

Thank you for your enquiry

An error has occurred

Due to a technical fault we are unable to to submit your form at the moment. Please try again later.

Additional details:

Bill Boyd Departs Boyd Gaming Chairman Role  US Rep. Dina Titus in a Dead Heat for Reelection, Survey Says  Caesars Digital Notches First Profitable Quarter  Osaka Accelerates Land Transfer Time Frame, Hopes to Have Integrated Resort Opened by 2025  MGM Resorts Stock Dinged by Morgan Stanley Downgrade, Price Target Cut Ahead of Second-Quarter Earnings Report  Louisiana Lawmakers Approve Caesars $138M Superdome Naming Rights  Alabama-Coushatta to Build New Texas Casino After Scotus Ruling  Washington State House Passes Sports Betting in Dead of Night Vote, Maverick Gaming Readies Legal Challenge  LSU Running Back Arrested for Illegal Gambling, Offense Pales Compared to Other Gridiron Stars  F1-Decimated Las Vegas Businesses Ask Tourism Board for $23M