Operator News
Japan – Sands remains confident on Japan licence
By Phil - 30 July 2018
Las Vegas Sands remains confident that it is well positioned to win one of the three casino licences in Japan due not only to the success of its existing Integrated Resorts in Asia but also due to its CEO ties to Japan.
Speaking during the company’s second-quarter earnings call, Sands’ CEO Sheldon Adelson said: “Everybody, local Japanese, business people, banks, say we have the leading position in Japan because of my background. I used to produce Comdex show in Japan, and I also helped them to redesign the biggest exhibition center they have in Japan called Makuhari Messe. And when they went to build that in the 1980s, the Governor of Chiba, in which Makuhari is located, came to my office in Boston and I helped them redesign the exhibition center. So I’ve got a good background and reputation in Japan for being the leading MICE Integrated Resort developer and operator. And I think that the estimates by people who know, say that we’re in the number one pole position. We have powerful reference site for emerging jurisdictions considering large scale integrated resort developments.”
Robert Goldstein, Sands’ President added: “We don’t have a timetable. We wait for the government to direct us as to how to go forward. But we’ve had a presence there for over a decade and we’re eager to be there. I think our plan is simple. We have the balance sheet. We have the reference point IRs in both Macao and Singapore that the Japanese government look to. We have the defining MICE space in Macau and Singapore and we have the defining entertainment activity in those places. The buildings we built in Macau are pretty extraordinary too. I think, again, strategically what makes this company different is our balance sheet and Sheldon’s ability to figure out what to build and where to build it. What he built in Macao remains the reference point for Asian IRs. He took up in the Cotai Strip and that’s amazing achievement. I think they look at his MICE focus, look at his retail focus and they look at his grand plan and I think that bodes well for our future development in Japan. We have the balance sheet. We have the reference sites. We sure have the appetite and we just want to get started. So we’re hoping the government moves forward. We’ll wait for their direction and adhere to their advice.”
Mr Adelson added: “What about our good looks and charm, Rob?”
To which Mr Goldestein added: “Yeah we’re getting old, so. You and I are the old dogs in the hunt here, so I don’t think that’s going to get us there.”
Sands second quarter revenue came in at US$3.3bn, up 6.2 per cent although with growth rate dropping to 1.4 per cent, the results fell short of some Wall Street expectations. Property EBITDA in Macau increased by 25 per cent to $750m, above the consensus of $722m but the company’s Las Vegas operations saw EBITDA, which was tipped to reach $92m actually fall 2.5 per cent to $77m.
Mr. Adelson added: “We are pleased to have delivered strong financial results in the quarter, led by robust growth in Macao, where every property in our portfolio delivered growth and adjusted property EBITDA reached $750m, an increase of 25% compared to the second quarter of 2017. While lower Rolling Chip volume and win percentage compared to the year ago quarter impacted our results at Marina Bay Sands in Singapore, the power of our unique convention-based Integrated Resort business model remains evident in our financial performance, with Singapore delivering $368m of adjusted property EBITDA and Las Vegas performing well despite lower than expected hold on table games play.”
