The Mohegan Tribal Gaming Authority reported a return to profitability in the last quarter of 2026 after completing its exit from South Korea, with a $102 million gain linked to the disposal of its former Korean integrated resort operations.
For the three months ended December 31st, 2025, the US-based casino and entertainment operator posted net income of $107.7 million, compared with a net loss of $83.8 million a year earlier, when its South Korean business weighed heavily on results.
The swing was driven by the full deconsolidation of Mohegan INSPIRE, the integrated entertainment resort near Incheon International Airport that the company opened in phases beginning in late 2023.
Mohegan ceased to be an equity holder in the project on February 13th, 2025, after lenders to the resort’s parent company assumed ownership and control. The “Korean Transition” resulted in the classification of the IR-linked entities as discontinued operations.
In the latest quarter, Mohegan recorded a $102 million gain on disposal of the discontinued Korean operations. That compared with a $105.6 million loss from discontinued operations in the same period a year earlier, when Inspire was still ramping up and carrying heavy interest and operating costs.
The company also derecognized certain guarantee liabilities tied to the Korean project after Inspire completed a refinancing of its senior credit facility during the quarter. The refinancing eliminated Mohegan’s prior obligation to provide up to $100 million of credit support under support and backstop agreements related to the development.
As of December 31st, 2025, Mohegan reported a remaining $41 million liability associated with subsidiary guarantees linked to INSPIRE.
The South Korean property had generated $63.5 million in net revenues in the quarter ended December 31st, 2024, but also incurred $103.2 million in net interest expense and significant operating and depreciation costs, contributing to the prior-year loss from discontinued operations.
Following the Korea Transition, Mohegan’s results now reflect only its continuing operations, which include two owned US properties, managed operations in Canada and its digital gaming segment.
Excluding discontinued operations, net revenues from continuing operations were broadly flat year-on-year at $434.5 million in the latest quarter. Income from continuing operations was $5.7 million, down from $21.8 million a year earlier, reflecting higher interest expense following refinancing transactions completed in April 2025.
Management said the company believes existing cash balances, financing arrangements and operating cash flows will be sufficient to meet debt service, capital expenditure and working capital needs over the next 12 months, following the exit from South Korea and related balance sheet adjustments.
