Executives of US tribal casino operator Mohegan Gaming said Thursday they remain confident that the company’s recently opened Mohegan Inspire integrated resort in Incheon, South Korea will become cash flow positive before the end of 2024.
Mohegan released its financial results for the financial year ended 30 September 2023 and discussed the 30 September soft opening of Mohegan Inspire during its FY23 earnings call, where CEO Ray Pineault and COO Jody Madigan were asked about the property’s short-term prospects.
The soft opening included launch of the IR’s three hotel towers, 15,000-seat multi-purpose arena, MICE facilities, Splash Bay indoor water park, Aurora entertainment street and almost a dozen INSPIRE-owned restaurants, although the foreigner-only casino and retail won’t open until next year.
Providing some color on footfall during the first weeks of opening, with Mohegan Inspire having already hosted two-large scale evens, Madigan said, “Post [opening] weekend we’ve seen good foot traffic. On weekends our hotel occupancy is at where we thought it would be and we’re seeing really good food and beverage covers.
“There is a phased opening with that and we’re not fully ramped so we have a couple more things coming in early 2024 on the gaming side and then shortly thereafter there will be some additional non-gaming in Q2 that will finish the project out.
“I am pleased with what we’re seeing so far. I do believe we will be cash flow positive by the end of the year.”
Pineault also reiterated Mohegan’s expectation that Inspire would be granted its casino license in the March 2024 quarter, revealing that the company has now submitted all paperwork associated with its license application.
As per Ministry of Culture, Sports and Tourism requirements, associated hotels must first be operational and granted a 5-star rating before any casino license can be granted.
“I can happily report [that process] is well underway and we’re expecting a completion of that in very short order,” Pineault said. “We do anticipate having our casino license in the first calendar quarter of 2024 and ramping up from there. Then some of the retail and additional things come online in the second quarter.
“We are in line to receive our casino license having submitted all of our material at this point.”
Pineault added that early feedback from customers was positive, particularly around an 800-guest plated dinner on opening night and the Mellon Music Awards held in the arena a few days later.
“I’m happy to report that our team performed flawlessly for the events and the reviews we’ve received from the attendees at both events – both in person and as reviewed on social media – have been raving about the quality of the property and the service of our team,” he said.
“As we’ve indicated from the outset, Mohegan Inspire will have a balanced mix of gaming and non-gaming amenities. The first few events have demonstrated the appeal of our non-gaming amenities and we look forward to the continued strength of the arena and ballroom along with other non-gaming amenities we will offer as they become operational.”
Separately, Mohegan reported its highest ever consolidated net revenues of US$1.67 billion in FY23, and second highest Adjusted EBITDA of US$399.9 million, on the strength of its domestic properties.
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