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COMFIRMERD! LV SANDS in some trouble

newyorker88

Alfrescian
Loyal
Some brothers posted a thread asking if LV sands is in trouble, well, here it is. As reported.

See the lines in red.





Chips down for Asia gaming
Posted: 19 October 2008 1509 hrs


Photos 1 of 1

A croupier waits for customers at a table in The Four Seasons Hotel casino in Macau.



SINGAPORE: The chips are down for Asia's gaming sector, with high rollers and other visitors expected to stay home as the world financial crisis takes its toll.

But analysts say the squeeze is likely to be short-term, and Asia's gaming sector should weather the financial turmoil better than Las Vegas.

"I don't think this will end the Asian gaming boom," said Bill Eadington, economics professor and director of the University of Nevada Institute for the Study of Gambling and Commercial Gaming.

However, he said the crisis "certainly is going to have a noticeable impact for a year or two."

Early signs of an industry-wide slowdown have already emerged in Macau, the Las Vegas of the East. Government figures showed average hotel occupancy rates sank 7.1 per cent to 76.7 per cent in August from a year ago.

Gaming revenues in the southern Chinese city are reported in local media to have dropped 3.4 per cent to around US$860 million year-on-year in September, the first such decline since January 2006.

Part of the drop can be attributed to recent moves by Beijing to impose restrictions on mainland Chinese visitors to Macau, analysts told AFP.

But the region, including Macau, can also expect to feel the pinch from a financial crisis which has already slowed the US economy, analysts said.

"The recent shocks to the global economic system have definitely impacted the psyche of the Asian leisure tourist," said Jonathan Galaviz, a partner with Nevada-based travel and leisure consultancy Globalysis.

"There is some evidence that spending by tourists in Macau is softening," he said, but "in the long run, Asia continues to be a bright spot for long-term tourism sector growth and Macau's casino sector should be able to capitalise upon this growth over the next decade."

While Macau government figures show visitors from China down 10.7 per cent year-on-year in August, those from Southeast Asia soared 119.2 per cent over the same period.

Sometimes during economic adversity people actually gamble more, said David Green, Macau-based gaming practice director with Pricewaterhouse Coopers.

Analysts said Asia's growing reputation as a gaming hotspot can only increase with several projects under development.

Official figures from Macau earlier this year said there were 28 casinos in the territory. Analysts have said another 15 are to open in the next four years.

Elsewhere, central Singapore has become a giant construction zone where two multi-billion-dollar "integrated resorts" featuring entertainment and convention facilities, as well as gaming, are being built.

"The current economic crisis is only going to soften the market, but the interest in visiting Macau is only going to get stronger in the future," said Andy Nazarechuk, dean of the Singaporean campus of the University of Nevada, Las Vegas.

The Singapore projects are going to be "the two most spectacular" in the region, he added.

Malaysia's Genting International, which is behind Singapore's Resorts World at Sentosa integrated resort, is sticking with its target of 15 million visitors in the first year of operation when it opens in early 2010.

"We remain confident and optimistic about the prospects of Resorts World at Sentosa," said Krist Boo, vice president for communications.

She added the company completed financing for the project in April. The US$4.2 billion development is to include Southeast Asia's first Universal Studios theme park.

Las Vegas Sands, which is building the other Singapore integrated resort, declined to comment when contacted by AFP.

Sands operates two Macau casinos including the giant Venetian, which opened last year with a gaming area the size of three football fields.

The Wall Street Journal reported early this month that Sheldon Adelson, chief executive of Las Vegas Sands, had agreed to lend his company US$475 million of his own cash, in a sign of confidence that his company would weather the global credit crunch.

The report quoted him as saying the company is pursuing with Asian banks the financing of nearly US$2 billion needed for its latest Macau project.


Analysts said the global credit squeeze may make raising funds more difficult for any project, not just gaming.

"Anyone who is lending the money will want to analyse how fast the money is coming back," said Matthew Gorman, head of corporate practice with Stephenson Harwood, an international law firm.

Canadian-based Asian Coast Development Ltd (ACDL), involved in a Vietnam beachfront project it says will include the communist country's first Las Vegas-style casinos, remains positive.

"We feel one of our biggest strengths in this regard is the fact that we are planning a multi-phased development," said chief executive David Subotic.

"Staggered construction schedules will provide us with the flexibility and agility to deal with any economic challenges proactively."
 

theblackhole

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Generous Asset
Macau sands will slowly return to the bay...Singapore Sands will slowly be built into a grand castle ....Singapore is not Macau....we will make Sands successful because we are different from Macau...we are the hub of all hubs...and we will be successful and become the beacon of light in Asia.....Singapore Boleh Lah!!!
 

cass888

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Loyal
Macau sands will slowly return to the bay...Singapore Sands will slowly be built into a grand castle ....Singapore is not Macau....we will make Sands successful because we are different from Macau...we are the hub of all hubs...and we will be successful and become the beacon of light in Asia.....Singapore Boleh Lah!!!

Rubbish. Macau Sands and all the casinos will flourish. As will Singapore Sands and Singapore Genting. Malaysia Genting will also flourish. Sooner or later, more countires will be forced to open casinos, includling Hong Kong, Thailand, Malaysia (KL & JB?) and Indonesia (Batam and Bintan). In this case, more competition doesn't mean less business as people will treat Batam, Singapore, JB, Genting, Bangkok, Hong Kong, Vietnam and Thailand as one large casino belt.

F1 will also spread to the other ASEAN regions.

At the same time. Mainstream economic activity will centre around China and Vietnam.
 

theblackhole

Alfrescian (InfP)
Generous Asset
okay okay all SANDs and Gentings will flourish and flourish. If no chips to play, go to the beach and just collect the sands as chips...if no cash and no money, just go to the bitch and collect the sands and play...so easy!!! hahahhaaa...everyone will be bathed in sands and all will get rich....horsay liao!!!
 

TeeKee

Alfrescian
Loyal
The report quoted him as saying the company is pursuing with Asian banks the financing of nearly US$2 billion needed for its latest Macau project.

so which sucker bankers after bleeding from the global financial crisis, want to continue to bleed for this 2 white elephants? :biggrin:

let's short that bugger stocks!! :biggrin: :biggrin:
 

Merl Haggard

Alfrescian (Inf)
Asset
so which sucker bankers after bleeding from the global financial crisis, want to continue to bleed for this 2 white elephants? :biggrin:

let's short that bugger stocks!! :biggrin: :biggrin:

DBS must be very nervous now cos they syndicated the initial US$5.2 bln loan to Sands.
 

Merl Haggard

Alfrescian (Inf)
Asset
must be retribution from God, for promoting in sinful activies....has the LeeMan Bros-Minibonds debacle been settled yet?.....:biggrin:

Old fart was behind controlling the whole puppet show.

It was six months before the award when I saw old fart and his entourage staying at LVS Venetian Casino Resort, I concluded that LVS would win.
 

cass888

Alfrescian
Loyal
okay okay all SANDs and Gentings will flourish and flourish. If no chips to play, go to the beach and just collect the sands as chips...if no cash and no money, just go to the bitch and collect the sands and play...so easy!!! hahahhaaa...everyone will be bathed in sands and all will get rich....horsay liao!!!

Don't worry lah. With casino, those gamblers even if they have $200 in their daughter's piggy bank they will also break the piggy bank and go to the casino.

Malaysians nearer to Genting Highlands go Genting Highlands. Nearer to Singapore go Genting Sentosa. Soon Thailand. Then Indonesia. Laos and Cambodia will flourish because of casino.

You have no idea about profitability of casinos. You think Sands was so stupid to throw US$2 billion into Singapore is it? You think Genting so stupid to throw US$2 billion into Singapore is it? They expected to get it back within a year or two!
 

DIVISION1

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In times of such uncertain global financial turmoil, companies experiencing credit crunches is not unusual. But that does not mean that the business is performing badly.
 

zack123

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In times of such uncertain global financial turmoil, companies experiencing credit crunches is not unusual. But that does not mean that the business is performing badly.

A company that is forward looking would have made provisions to ensure that it has sufficient funds to sail through these events. Even the most sound of companies can collapse without sufficient funding. But in any case LVS will be provided with capital injection by the Spore govt to ensure success.
 

singveld

Alfrescian (Inf)
Asset
they borrow too much money from banks to expand in asia
now with their stock price going down

they probably have problem paying back the crushing debts.

good luck to them.

i went to their venetican in las vegas, they did a good job with the hotel. though i like the real venice better. but good design. making the water flow inside is so high tech.
 

TeeKee

Alfrescian
Loyal
You have no idea about profitability of casinos. You think Sands was so stupid to throw US$2 billion into Singapore is it? You think Genting so stupid to throw US$2 billion into Singapore is it? They expected to get it back within a year or two!

they expected? life is so unpredictable, who would have known one of the sgp casino bidder will crash his helo and killed himself?
 

cass888

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Loyal
In times of such uncertain global financial turmoil, companies experiencing credit crunches is not unusual. But that does not mean that the business is performing badly.

In bad times like these, casinos make the most money just for the slight hope of making it big. I'm sure the casinos are kicking themselves that the Singapore casinos are not opened yet.
 

The_Latest_H

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Loyal
F1 will also spread to the other ASEAN regions.

Haven't you heard of business cannibalism, where too many branches of the same chain in the same area actually affects business growth?

I mean, look at Starbucks. They opened too many around the world, around the same area in the major cities and now they are loaded with too much fat, and too much crap.

If there's casinos all over SEA, these casinos will get nowhere, and there would be no profits. And like consumption of sweets, too much of sweets will make you get diabetes.

The same can be said for F1 around the SEA region.
 

Merl Haggard

Alfrescian (Inf)
Asset
The Wall Street Journal reported early this month that Sheldon Adelson, chief executive of Las Vegas Sands, had agreed to lend his company US$475 million of his own cash, in a sign of confidence that his company would weather the global credit crunch.

The report quoted him as saying the company is pursuing with Asian banks the financing of nearly US$2 billion needed for its latest Macau project.



If wheelchair-bound Sheldon did not take out the US$475 million, LVS would have had to declare Chapter 11.

Anyway this US$475 million won't last LVS very long in this current climate; not when LVS has got to carry the burden of the operating costs of the 5 existing casinos in Vegas & Macao. Operating cost for each casino is about US$4 - US$5 million per day.

Poor fella has to dig out his own money to keep the company afloat, and that can only mean one thing, and that is no banks wanna touch him.
 

The_Latest_H

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Loyal
If Sheldon Adelson has to borrow US$2b for a new Macau casino, I wonder how much taxpayers' money did he borrow from the PAP to build his in Singapore....
 
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