The Inspire Entertainment Resort in Incheon, South Korea, is suffering from the Covid-19 pandemic that has hit the global casino industry and has halted the construction of Midan City, supported by Caesars and Inspire Resort.
Mohegan postpones Phase 1 of the Inspire project until 2023
US tribal casino operator Mohegan Gaming and Entertainment said it was opening a casino center Inspire in South Korea will be postponed to "early 2023". The first phase of the project was due to be completed in 2022, but the Covid-19 pandemic delayed the construction process.
The first stage is worth approx $ 1 billion includes the construction of a five-star hotel with over 1250 luxurious rooms, a large arena for sporting events and concerts as well casino about area of 20,000 square meters with 700 slot machines and 150 games. tables. The operator said:
"The partnership with Incheon Airport provides exceptional support and competitiveness with 70 million visitors annually."
The company announced a delay in the fourth quarter of the 2020 fiscal report that was released December 22 Unique 5 billion $ The resort is open to the public Incheon International Airport in South Korea, a strategic location about an hour from the heart Seoul.
Inspire the fight for capital support
In October, South Korean news sources reported that Midan City resort, which includes the Inspire project, is struggling with financial difficulties caused by the pandemic.
With the negative ramifications of Covid-19 on the casino industry and no end to the crisis in sight, it is becoming increasingly difficult to attract fresh capital to an unfinished project.
President Mario Kontomerkos however, he assured that the group "remains committed" to Inspire Incheon and added that diversifying activities in the current difficult environment is of paramount importance.
Inspire will be the first truly integrated center entertainment in Korea and Northeast Asia and the first destination in the world with its own private air terminal. The center will attract both domestic and foreign tourists - adds the company.
Covid-19 continues to impact fourth-quarter earnings
In the quarter ended September 30 Mohegan Gaming and Entertainment reported net revenues in of $ 294 million, which means a decrease by 29% with 414 million USD Every year.
The adjusted Ebitda recorded a decrease by 7,4% with $ 89.4 million down $ 82.8 million. The decline in the adjusted EBITDA was mainly due to the impact of some one-off payroll and consulting loans in 2019, the company said.
MGE Niagara Resorts remains closed due to Covid-19 restrictions and reports a 73 percent drop in EBITDA in Q4 on a yearly basis. iGaming and Unibet Sportsbook at Mohegan Sun Pocono continue to perform well and increase revenue from games that are affected by Covid-19 health and safety protocols.