Mohegan Tribal Gaming Authority’s latest venture, Mohegan INSPIRE, has showcased promising performance in its inaugural quarter of 2024. Despite initial operating expenses, the integrated resort recorded net revenues of US$35.9 million, signaling a positive trajectory towards achieving EBITDA break-even in the near future.
Revenue Performance
In the first quarter of 2024, Mohegan INSPIRE experienced a notable surge in net revenues, totaling US$35.9 million. This achievement underscores the success of the resort’s phased opening approach, with the casino launch on February 3 followed by a grand opening ceremony on March 5. Despite incurring an Adjusted EBITDA loss of US$24.1 million, primarily due to opening expenses linked to labor and marketing costs, Mohegan remains optimistic about the trajectory towards breakeven EBITDA.
Ramp-Up Phase and Revenue Mix
During the earnings call, Joe Hasson, Mohegan’s Chief Operating Officer, highlighted the positive ramp trend observed since the resort’s inauguration. Notably, both the foreigner-only casino and non-gaming segments have exhibited favorable momentum, contributing to revenue growth. While specific revenue breakdowns were not disclosed, the overall reception from consumers has been encouraging, fueling confidence in reaching operational targets.
Market Penetration and Regional Receptivity
Mohegan President and CEO, Ray Pineault, emphasized the widespread receptivity towards Mohegan INSPIRE, extending beyond the local South Korean market. The resort has garnered attention and visitation from regions including China, Japan, and Taiwan, signaling a promising outlook for regional market penetration. This cross-regional appeal positions Mohegan INSPIRE as a prominent player in the Asian integrated resort landscape.
Group-Wide Performance
Despite initial operating costs associated with Mohegan INSPIRE’s launch, the Mohegan Tribal Gaming Authority reported its highest quarterly net revenue in history, reaching US$461.7 million. This growth, up by 13.8% year-on-year, was primarily fueled by revenue contributions from Mohegan INSPIRE and continued expansion in the US digital segment. However, consolidated Adjusted EBITDA experienced a decline of 17.8% to US$84.0 million, reflecting the impact of operational expenses related to the resort’s opening.
Mohegan INSPIRE’s debut quarter showcases promising growth prospects and market penetration in the Asian integrated resort industry. Despite initial financial challenges, the resort’s phased approach to opening and strategic focus on consumer engagement have laid a strong foundation for future success. With positive momentum in revenue generation and regional receptivity, Mohegan INSPIRE is poised to emerge as a key player in the vibrant landscape of international integrated resorts.