Bain Capital seeks to appropriate shares in MGE Korea
Bain made the move as Mohegan Gaming & Entertainment posted a rise in revenue in Q1 results.
US.- Mohegan Gaming & Entertainment (MGE) has shared its financial results for the first quarter of financial year 2024/2025. It posted net revenue of US$498.9m, up 17.3 per cent when compared to last year. Group-wide EBITDA reached US$85.1m, a rise of 7.6 per cent, while a net loss of US$85.9m is an improvement on the US$97m loss a year ago.
The company attributed the growth in revenue to a strong quarter at Mohegan Sun in the US and continued growth from Mohegan Digital. Mohegan Inspire, the South Korean casino resort, posted net revenue of US$63.52m compared with US$5.1m a year earlier before the casino at the complex opened.
However, the company appears to have been caught by surprise after, Bain Capital, the main lender to MGE Korea, today moved to take control of the shares of MGE Korea following a default. Ari Glazer, Mohegan’s chief financial officer said the company is now considering its options.
The venue recorded negative adjusted EBITDA of US$4.19m, an improvement on the US$10.9m EBITDA loss recorded in the prior-year period. In the previous quarter, Mohegan Inspire had posted negative EBITDA of US$6.9m.
Gross slot revenue was US$3,977 and gross table revenue US$48,515. Hotel occupancy reached 71 per cent.
Ray Pineault, president and CEO of Mohegan, said: “During 2024, Mohegan rolled out a number of important initiatives as part of our strategy to become one of the premier global omnichannel resort operators. Our success in accomplishing these transformational objectives is a credit to our incredible team, and as I look forward to 2025, I’m optimistic about the trends I see emerging within our omnichannel business and from the increased contributions by our non-gaming segments.”
Mohegan Inspire held a soft opening on November 30, 2023 and a grand opening last March. It has over 150 table games, 390 slot machines, and 160 electronic table games (ETG). It has a floor for VIP guests featuring a Guandong-style restaurant.
