In the last few days it was time again and the gambling company of Las Vegas Sands Corporation presented its quarterly figures for the third quarter of this year. In general, the figures are not exactly outstanding, but Casino boss Sheldon Adelson promises improvement. The ace up the CEO’s sleeve is apparently the Asian market, where Adelson expects it to go really well in the coming years.
The gambling company of Las Vegas Sands Corporation published its financial report for the third quarter of the current fiscal year 2019 a few days ago. The figures are very interesting. After years of growth, the trend seems to have been rather contrary, at least in the last three months. As the report shows, only around 3.25 billion US dollars were generated in these three months. The company has to accept a decline of 3.6 percent. Operating income also did not develop particularly well. This has lost around 2.50 percent and is worth around 899 million US dollars. The net income , which fell by 4.30 percent to 669 million US dollars, has also fallen more sharply.
In total, therefore, no figures with which the company can be particularly satisfied. This also applies to CEO Sheldon Adelson, who in the past hardly ever made a public appearance due to cancer. Although Adelson cannot be satisfied with the figures, the boss is confident overall.
Boss is focusing on the Asian market
The reasons for this lie primarily in the Asian market, where the 85-year-old apparently sees particularly good opportunities for pleasant business. One would like to put a large focus thereby obviously also on the new market in Japan and to address these offensively. Adelson explained:
“We continue to be enthusiastic about the future growth opportunities in Asia. Next year, we will open about two million square feet of luxurious suites on the CotaiStrip with the opening of the Grand Suites in the Four Seasons Macao and the Tower Suites in London. The London Macao’s additional tourism and entertainment offerings will also be presented to the public for the first time in 2020 and 2021. In the distant future, the expansion of Marina Bay Sands in Singapore will also increase our suite capacity by around 40 percent, and we plan to introduce a state-of-the-art entertainment arena (…). We will also continue to aggressively pursue development opportunities in new markets, including Japan.”
Problem: Macao is developing into a flop
In general, Adelson seems to be energetic and convinced that it will be possible to get off to a good start in Asia in the coming years. Not quite this opinion are again economists, who have in recent years and months with the development of casino sales in Macau occupied. These came to the result that the turnovers will worsen still in this year around up to three per cent . Reasons for this are to be among other things the stricken economy and a recent decline with the Highrollern. For the Las Vegas Sands Corporation, this already means some problems in Macau, where the subsidiary Sands China had to accept a minus of 1.9 percent compared to the same quarter last year. The only glimmer of hope in Asia thus remains the Marina Bay Sands in Singapore, where sales increased by an impressive USD 27 million compared with the previous year.
However, experts are increasingly critical of the Asian market. For example, it is unclear how the trade conflict between China and the USA will affect the licenses of US companies in Macau. Numerous licenses expire here in the coming months, among experts an extension is by no means certain. Possibly, at least there is a danger, Adelson is betting on the wrong horse at the wrong time.
Japan as a big ace in the sleeve?
Even if Boss Adelson currently has a different opinion, Macau’s status as a possible lifeline will probably first have to be withdrawn after the latest developments. But that doesn’t matter, because the CEO is also focusing on another part of Asia. High hopes are placed on the Japanese market, which, however, has yet to emerge. Recently, the authorities announced that an appropriate gambling authority will be set up, which in future will decide, for example, on the licence applications of the companies. In addition, the authority will also be responsible for monitoring ongoing business and ensuring that all money laundering and player protection requirements are implemented. So far, so good. What sounds promising at first, however, is primarily a dream of the future. Experts expect that no new casino can open in Japan before 2025. That would be after all still more than five years, which must survive Las Vegas Sands without possible progress in Asia.
The estimate of the experts does not come completely from approximate naturally. In fact, the entire legalization process is progressing extremely slowly. The new regulatory authority is due to take office in January 2020. Zuvor must be fixed however still guidelines of the government in Tokyo , at which the future gambling guidelines can orient themselves. According to the Japanese media, there is also a lack of top managers responsible for managing the authority. According to a proposal, these must first be confirmed by the parliament in Tokyo. Finally, there are also problems with the choice of location. Noch is not completely clear, where exactly the altogether three Casino Resorts in the country are to be established . Also here an interesting trend emerges by the way. Las Vegas Sands is nearly the only enterprise, which is interesting for a location in Tokyo. Competitors such as Hard Rock, MGM or Caesars prefer the city of Osaka. So it remains to be hoped from Sands’ point of view that you don’t bet on the wrong horse.