The Mohegan Tribal Gaming Authority (Mohegan) has seen its financial outlook improved, say CBRE analysts, thanks to progress in its South Korean project, which is ramping up revenue faster than expected.
Mohegan’s INSPIRE integrated resort in South Korea has helped boost the company to achieve the highest quarterly net revenues in its history, reaching $504.16 million in the second quarter of 2024.
The figure is a 21.4 percent yearly increase and reflects the net revenues generated by INSPIRE of $101.1 million since opening.
According to CBRE, recent reports highlight that Mohegan’s management is optimistic about refinancing its debt by early 2025, as management plans to simplify finances, reduce debt, and avoid needing extra support for the South Korean venture, which has been a concern for some investors.
‘Mohegan outperformed our expectations with solid digital growth and faster-than-expected revenue ramp in Korea. Positively, management paid down $54mm on the secured revolver and did not appear to provide any support to Korea’, CBRE affirmed in a recent dispatch.
Overall, Mohegan’s ability to generate strong cash flows, especially from its operations in South Korea and Connecticut, was said to have boosted investor confidence. As a result, their financial outlook is now more positive, with strong potential for refinancing and continued growth.
