Financial report from Mohegan reveals plans for restructuring debt on their INSPIRE resort project through refinancing.
In a significant milestone, Mohegan Gaming & Entertainment (MGE) opened the Mohegan INSPIRE Resort at Incheon International Airport in Yeongjong Island, South Korea, in March 2024. This expansive entertainment resort, featuring three hotel towers, a 15,000-seat multi-purpose arena, an indoor water park, an outdoor entertainment park, a casino exclusive for foreigners, shopping, dining, and entertainment, has marked a new chapter in MGE's global expansion.
Raymond Pineault, Chief Executive Officer of MGE, highlighted the company's transformation from a regional, single casino operator into one of the premier global integrated omni-channel resort operators over the past 30 years. This transformation is evident in MGE's diverse portfolio, which includes resorts in Connecticut, Pennsylvania, Nevada, New Jersey, Washington, and two properties in Niagara Falls, Canada.
The company's Q4 net revenues increased by $54.3 million year over year to $497.7 million, primarily due to the growth of Mohegan Digital and revenue from the Mohegan INSPIRE Resort. This growth propelled MGE's Q4 net revenue to its second-highest in company history, up 12% year over year.
Ari Glazer, Chief Financial Officer of MGE, stated that the year marks the culmination of a number of important initiatives which enables the company to build on its accomplishments and remain focused on executing its strategy. However, MGE is seeking to refinance debt incurred with the construction of the $1.7 billion Mohegan INSPIRE Resort to avoid a default.
The Mohegan INSPIRE Resort generated net revenue of $62.2 million in Q4. Despite this, consolidated Adjusted EBITDA for Q4 decreased $6.8 million compared with the prior-year period. For the full year, MGE's net revenues increased by $216.7 million compared with the prior-year period, due to digital, INSPIRE, and stronger non-gaming revenues at MGE's other resorts. However, consolidated Adjusted EBITDA for the full year decreased $50.9 million compared with the prior-year period, primarily due to operating costs related to the INSPIRE opening and low table hold at Mohegan INSPIRE.
In a positive note, Mohegan Digital net revenue increased by $60.1 million year over year. Furthermore, the Mohegan Tribal Gaming Authority reported a significant increase in net revenue for Q4 and the full fiscal year ended Sept. 30, 2024.
As MGE continues to grow and expand its global footprint, the refinancing of the debt incurred by the Mohegan Tribal Gaming Authority for the construction of the INSPIRE Entertainment Resort in South Korea was conducted by MGE. This refinancing will help the company manage its financial obligations and continue its growth trajectory.
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