In the fiscal third quarter ended June 30, Mohegan Tribunal Gaming Authority’s net profit fell 14.8% year-over-year to $50.6 million, according to a release released Thursday.
This was a nearly flat year-over-year quarterly net profit of $415.4 million. Game revenue for the three months was $281.9 million, down 4.1% year-over-year.
Trading as U.S.-based Mohegan Gaming, the company is developing a resort (pictured) with a foreigner-only casino in Incheon, Korea. The first phase of the Inspire Entertainment Resort’s project has been described as a project worth US$1.6 billion.
Ray Pineault, chief executive of Mohegan Gaming, said on the group’s earnings conference call Thursday that non-gaming amenities are still expected to open there in the fourth quarter of this year.
The CEO told analysts, “There’s going to have to be something very abnormal to prevent us from achieving that goal.” He added that the typhoon that recently affected Korea has “no impact” in terms of the project schedule.
Chen Xie, president of Inspire Entertainment Resort, recently told GGRAsia that he hopes the on-site casinos will be open by the Chinese New Year, which starts Feb. 10 next year.
In a phone call Thursday, Mr. Pinot was asked about the casino’s operating hours. He said he couldn’t give any guarantees “because it’s not under our control.”
He said, “As I said from the beginning, we need to open up our hotels and non-game facilities, get evaluated for hotels, and get a casino license.”
The CEO said, “Obviously, we hope to make it as short as possible. We don’t control it. We have some target dates where we are trying to communicate with [Korean] agencies and narrow them down.”
In an earnings deck presentation, Mohegan Inspire’s “completion of the project” was “approximately 89% at the end of July.”
The presentation explained that the multi-level plan would have three hotel towers, including a total of 1,200 hotel rooms, 15,000-seat arena and convention spaces, dining, shopping and entertainment facilities, an indoor water park, and an outdoor park for families, as well as a foreigner-only casino.
It mentioned that the building would be “similar in size and scale” to the Mohegan Sun group’s complex in Connecticut, U.S.A.
Carol Anderson, chief financial officer of Mohegan Gaming, said on the call that as of June 30, the group’s total debt, excluding capital leases and non-converted debt issuance costs and discounts, was $3.1 billion, up $218.7 million from the March quarter.
She said: “The increase is primarily related to financing activities resulting from the development of Mohegan Inspire, including additional funding from the Project Finance facility.