Mohegan's Inspire Korea resort shows concerning financial performance in its first year of operations, potentially risking loan default. The $1.6 billion integrated resort casino at Incheon International Airport generated disappointing results in FY2024.

Key Financial Metrics:

• Q4 net revenue: $62.2 million
• Full-year net revenue: $163.3 million
• Adjusted EBITDA loss: $49.5 million
• Casino revenue: $94.7 million (table games), $6.8 million (slots)
• Hotel occupancy: 69%

Despite Mohegan achieving record company-wide revenues of $1.88 billion (up 13% year-over-year), Inspire Korea's performance led to a consolidated EBITDA swing from a $34.5 million profit in FY2023 to a $36.1 million loss in FY2024.

Operational Challenges:

• Higher-than-expected operating costs
• Costly marketing campaigns
• Low table game hold percentages
• Location challenges (45 minutes from downtown Seoul)
• Foreigner-only casino restrictions

The property's gaming floor features:

• 150 live dealer table games
• 176-seat electronic table gaming stadium
• 373 slot machines

Mohegan faces potential default on its Korea Term Loan unless new lenders are secured. The performance gap is significant when compared to other Mohegan properties:

• Mohegan Sun (Connecticut): $589.2 million combined gaming revenue
• Canadian properties: $210.9 million GGR
• Mohegan Pennsylvania: $196.6 million GGR

These results suggest that Mohegan's strategy of targeting international business travelers at Incheon may need reassessment.

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