Gambling market gives corporation hope
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Las Vegas Sands Corporation is one of the largest American casino companies. The group of companies and hotel resorts such as the Marina Bay Sands in Singapore belong. A week ago, the group opened the financial report for the third quarter of 2019 and published a press release. Accordingly, the winning numbers are declining and the casino giant generated only $ 3.25 billion in the third quarter. The head of the group, Sheldon Adelson, is not afraid and worried. He relies on the potential of the Asian gaming market.
In addition to the resorts of Sands Macao and some other casino resorts, the US Casino group also includes the world-famous Marina Bay Sands in Singapore with its unique architecture. The building with the world-famous infinity pool over the roofs of Singapore is an extremely popular travel destination, which could Sales decline of 3.6 percent but also do not counteract. Other areas also showed red numbers. The operational income also fell by 2.5 percent to $ 899 million. It looks even more negative with the group’s net income. This fell by 4.3 percent to $ 699 million.
The chairman and CEO of Las Vegas Sands Corporation, Sheldon Adelson, surprisingly expressed himself despite the negative business figures and saw the future of the company secured. Previously, the 86-year-old corporate tycoon had not shown himself in public or in company presentations for more than a year due to cancer. Adelson put great hope in the planned expansion on the Asian gaming market. This should make the next financial year significantly more positive. The 86-year-old also said to various investors:
“We are still enthusiastic about our future growth opportunities in Asia. Next year we will introduce around 2 million square foot luxurious suites on the Cotai Strip with the opening of the Grand Suites in the Four Seasons Macao and the London Tower Suites. Additional tourism and entertainment offers from The London Macao will be presented for the first time in 2020 and 2021. In the distant future, the expansion of Marina Bay Sand in Singapore will also increase our suite capacities by 40 % and we will introduce a state-of-the-art entertainment arena (…). We will also take further developmental opportunities in new markets, including in Japan. ”
Is the future in the Asian market?
Adelson is by no means the only gambling entrepreneur who puts great hopes in the Far Eastern market. Other US gambling groups have also recognized the potential of the market. However, it is stimulated in Asia More and more resistance to the casino giants. The ongoing trade dispute between China and the United States ensures some uncertainties in the awarding of new lucky gambling licenses for US corporations in the Macau Gambling slave. So recently became The forecast gambling sales in Macau corrected downwards. as a reason, economists in the vip sector as well as the battered economy are mentioned as the reason. the developments have also hit the las vegas sands corporation in recent months. the subsidiary group sands china achieved in the third quarter of 2019 compared to the same period of the previous year A total of 1.9 percent lower profits. The total sales amounted to $ 2.11 billion. An exception in the negative whirlpool was the flagship of the casino group. The Marina Bay Sands in Singapore was able to increase its income by $ 27 million to a total of $ 793 million.
Other reasons for the declining profit figures: In addition to a sluggish VIP sector and the ongoing trade war, the expansion of the Marina Bay Sands also ensured increasing costs in the past quarter. Furthermore, there was talk of a increased tax rate in the official press release of Las Vegas Sands Corporation.
Japan could become the decisive point
The situation in Japan also has great potential on the Asian gaming market. Here is for a long time A regulation of the gambling market in place. Various casino and hotel resorts are planned. This has not been hidden from the great American casino companies. The Las Vegas Sands Corporation already left their great interest announced. However, the development of the project has stalled somewhat in recent months due to unknown, legal regulations and cost concerns. So far, when and to what extent the American gambling giant can gain a foothold on the Japanese market is so far in the stars. However, hope is more than present.