Sands guarded about Singapore’s casino industry in the future
March 2nd, 2010 | 
Author: Written by Our Correspondent
Despite all the media hype about Sentosa IR being off to a “good start” as proclaimed by the Straits Times, officials from Las Vegas Sands (LVS) which will operate Singapore’s second casino Marina Bay Sands scheduled to open on April 27 appeared to be guarded about its prospects.
LVS president and chief operating officer Michael Leven told the Reuters Travel and Leisure Summit:
“We are not disappointed in what we’re seeing in Genting, but it’s too early to assess”.
LVS is still seeking to refinance about US$5 billion of US loans this year and it is counting on LVS’s performance to clear the convenants.
Leven said LVS will need to generate at least US$400 million in EBITDA from Marina Bay Sands in a bid to meet debt covenants.
“We’re accumulating cash … the only risk is if Singapore doesn’t do well. We have to do $400 million in EBITDAR to clear covenants. If we don’t do that, we’ve made a bad investment in Singapore,” he added.
Chief Financial Officer Kenneth Kay said on a conference call last week LVS had US$11 billion in long term debt as of December 31, 2009, with an average weighted interest rate of four percent.
(EBITDAR definition: Earnings Before Interest, Taxes, Depreciation, Amortization and Rent. An approximate measure of a company’s operating cash flow based on data from the company’s income statement. Calculated by looking at earnings before the deduction of interest expenses, taxes, depreciation, amortization, and rent. Similar to, but less common than, Earnings Before Interest, Taxes, Depreciation, and Amortization.)
Leven’s remarks, which was reported widely by Reuters, Bloomberg and Macau Daily, was not covered by the Singapore media which continues to mislead Singaporeans with its inaccurate portrayal of the situation on the ground.
As early as September last year,an analyst from Citicorp Anil Daswani expressed doubts about the profitability of Singapore’s two integrated resorts.
She said that assuming MBS contributes 20 per cent of LVS’s total EBITDAR in its first full year, every eligible Singaporean will have to go to the casino five times a year and spend more then the average visitor to Macau.
However, a hefty entry fee of $100 is likely to put off some Singaporeans. Furthermore, unlike Las Vegas or Melbourne, Singapore has a small population of only 5 million people.
Ronnie Chan, chairman of Hang Lung Properties Ltd., Hong Kong’s fifth-biggest developer by market value, said recently in a Bloomberg Forum in Hong Kong that the two casino-resorts in Singapore will fail because they won’t be able to attract high-rollers:
“The big rollers are what make money in casinos, they will never come to Singapore, it’s a family entertainment” location. You think big-rollers will go to Singapore where they have teeth and fangs coming out sideways? There are too many rules. I was in Sentosa island, I really think that it’s going to be a flop…..The whole integrated entertainment industry, I’m worried for them. The good thing about Singapore is that if you flop, you’re given a second chance,” he said.
A few years ago, the state media gave extensive publicity to the opening of the now defunct Tang Dynasty Village in Jurong, but its name is not dead and buried.
The Sentosa IR, opened for more than two weeks ago had seen more foreign workers than high-rollers so far. If the situation does not improve, there is a chance that the two IRs may become “white elephants” in the middle of Singapore’s Central Business District.
Posted in Editorial
@”The good thing about Singapore is that if you flop, you’re given a second chance….”
… and a third, and a fourth and a fifth… ad infinitum. If and only if you are the government or a government-linked entity eg. Temasek.
From Micropolis to the recent massive property losses in New York, how many chances have already been given? Staring at F1 and the IRs in the face, how many more chances will be given?
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Marina Bay Sands is the tombs stone for the old Fuc, didn’t he say having Casino over his death body ?
Tomb stone is sure bad luck for Sands , so how can they make money ..hmm Tomb stone make of sand ..hor ..
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i sincerely believe they will be white elephants. we are a decade late for attractions like these. and we have too many rules. how in the world will casinos flourish in an oppressive and repressive regime like ours, is beyond me.
i have yet to go and will most likely not.
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only if u are a GLC than you have a second, third, fourth chance. otherwise, singapore is essentially a meritocracy society. if you are not rich, well educated and good looking, you are completely screwed.
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Both the casinos will work well and acheive their target earning if the following is true :-
1 ) Local singaporeans are getting good jobs
2 ) The country is prospering and companies profiting
The above are all false .. why ?
1 ) Local singaporeans cannot even affort to give birth
2 ) local singaporeans are getting very lousy jobs
3 ) un-employment rate is very high
4 ) Garman promised of jobs ( IR etc ) not true
5 ) Net wealth of the locals are negative
One big failure is the implementation of FT policy . it basically shut down our growth . This year , the garman is building highways to boost GDB growth as nothing else will growth . Its very artifical . Therefore , both the IR will be in trouble very soon ( one already in trouble )
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Quote -
Leven said LVS will need to generate at least US$400 million in EBITDA from Marina Bay Sands in a bid to meet debt covenants
disappointed in what we’re seeing in Genting, but it’s too early to assess”.
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US$400 million only, TH can help write it off.
X 10 = only 4 billions = PEANUTS
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Genting Singapore’s full-year net loss widens to S$277m
http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1038582/1/.html
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Again no problem, TH n GIC can buy up the loss.
TH n GIC r expert at it.
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Levies are levies. The authority can, and has shown that it can manipulate levies. There is no doubt that the real income spinner for the IRs is roulette not roller-coasters. Look at the Ferris wheel – is it a wheel of fortune?
The casinos cannot depend on tourists and nearby visitors from Batam, Bintan, Johor, Jakarta or India to roll in. Macau has more to offer the Chinese gamblers than Singapore. And it does not make sense for the Australians to come unless Tiger offer free flights.
So, if Singaporeans don’t wager at the casinos, the IRs are as good as dead. The feng-shui masters already said so.
My bet is that the levy (entry fee for Singaporeans) will be amended.
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THIS IS THE LAST GAME THE PAPAYA CAN PLAY. WHOLE WORLD LOOKING AT THE 2 MOST EXPENBIVE CASINOS FLOODED WITH FT CONTRACTORS ASKING FOR FREE DRINKS ONLY. IN FACT , MOST OF THE 3 MILLIONS LOW WAGE WORKERS WILL BE AT THE CASINOS DURING SAT AND SUNDAY . THE WORLD CLASS PAPAYAS NOW PANIC AND START BLAME GAME. THEY HAVE TOTALLY NO CONFIDENT IN WHATEVER THEY ARE DOING AND HOPING CAN WIN THE NEXT ELECTION . FRANKLY , FREAK ELECTION IS COMING . THEY KNOW IT
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i don’t know… i thot sentosa can be a very good “exhibition and events center”, or a “club med” style destination… both will be more apealing to visitors instead of casino, that normally attract unwanted crowds. The “extra” monies that casino draws are no way near the social problems that casino and related gaming industry created. Sentosa is first a family destination, and should have “family” friendly activities.
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I was there 2 Mondays ago(22.02.2010).
The place was very quiet. At basement 2 carpark where I parked my car, the car park was quite empty. There were many taxis waiting in line to pick passengers on B1.
For those of you who are keen of going there for a look see, please take note of the following parking rates. (Taking note of the timing will definitely help you to save and avoid paying the unnecessary parking charges):
Mon – Fri:
7am to 7pm : $6 for 1st hr, sub $2/hr
12nn to 2 pm : $1 for 1st Hr, sub $2/hr
After 7pm : $4/entry
Max: $20/entry
Sat/Sun/PH:
7am to 7pm : $7 for 1st hr, sub $2/hr
After 7pm : $4/entry
Max: $20/entry
While I am writing this comment right now, the market has just closed for lunch. Genting shares last traded at $0.875 with a trade volume of 135,269 lots traded. It lost $0.035 from yesterday’s closing.
(Caveat emptor)
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Looks like pap will be lifting the $100 levy for singaporeans soon.. and then claim that it is for citizens to enjoy the priveledge..
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Las Vegas Sands (NYSE: LVS) Reports Narrower 4Q Loss
New York, New York 2/18/2010 10:00 PM GMT (TransWorldNews
http://www.transworldnews.com/NewsStory.aspx?id=200158&cat=1
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With or without the $100 levy, the casinos will still flop, WHY?, because I put a curse on them. HA!HA!HA!HA!HA!
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Looks like pap will be paing $100 for all singaporeans who visit casino . HA HA HA HA
TIMBBBBBBBBER ……
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I hope they will fail. Many Singaporeans are without permanent jobs – where to find money and time to gamble? Why should the high rollers come to Singapore? There are far more interesting places in LV, Macau and elsewhere.
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These 2 COFFINSINOS is doom to fail!!!!!
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Wait will get free $100 credit to play…
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looks like the MIW is gambling away our taxpayers monies, win they masok pocket, lose, just pass the ball back to us singaporeans. How to stop all these? singaporeans?
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…if nobody bite…they will increase to > $100 … if still no bite…free tickets ? or some other never fully thought through gimmick…
How low can one go?
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Well,if these elites want these damned casinos to succeed,they just gotta help singaporean find good jobs with good pays.
FTs would most likely remit most of their incomes back home whilst displaced citizens-even those who may like to gamble- simply have no money to do so!
Maybe,mandate the MPs and top civil servants to take turn to spend some of their EXTRA income there?
Otherwise,like the Hongkie chap said…it smells of doom!
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“Leven’s remarks, which was reported widely by Reuters, Bloomberg and Macau Daily, was not covered by the Singapore media which continues to mislead Singaporeans with its inaccurate portrayal of the situation on the ground.”
Haha, nice one Temasek Review!
I only bought 1 copy of Straits Times in the past year, and that’s only cause my friend needed to check the recruit section.
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Most people know these 2 casinos & resorts will fail. Except the bosses of RWS & LVS. Maybe they will being brainwash & sweet talks by our government.
Our government are also desperate to grab whatever money they can get hold of. They had already run out of ideals. If these 2 casinos fail, Singaporeans will suffer more as they are the sacrificial lambs to be slaughter.
So don’t be too happy.
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Wonder how its going to be our fault…..
Must be that we Singaporeans arent “entrepreneurial” enough to “strike it big” at the casinos.
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Why dun we have a facebook group that ask people NOT to go to the casino. Not the court order one where we are not going because we are worried about gambling problems.
A facebook group that tells the government and the casino, opps… IR operators that we are not keen to go to the casinos. Let them know that even when they are desperate and will finally open the doors to Singaporean, we will not be keen to go. (of course if they pays us to go, why not!
)
Let them know that IR is doomed to fail like the Tang Dynasty place.
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Third World country with low class gambling den.
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Our grand children will read in history book of the Great Plight of Sinky Island submitted to MIW’s principles of 7 deadly sins…
Greed – Ponzie schemes n foreign investments follies u name them… CASINOS! nvr ending lists…
Pride – “Spurs Stucking Hide” attitude to every screw ups.
Lust – Every Sinkies owe their HOLES to MIW the moment they are born.
Wrath – The knuckles K.O. to any threatening opponents who questioned them logically… “LOCK EM’ UP FOR DECADES!”
Sloth – “There’s nothing we can do…” attitude from public housing problems to M.Selamat + Ionescu + 1-eye-Dragon + Ah Hao etc… etc… Basically sit duck n do nothing! “Lazy to catch lah!” YAWNzzzzz!
Envy – Aspiration of Swiss standard of lifestyles; Americans Innovation; China’s Productivity; Indonesians’ Resources; Latinos’ Passion; India’s Talents; Japanese’ Longetivity; African’s Stamina… Wants to import everything, but hey dude! Yr size too small lah! AT the end… SINK! blurb.blurb.blurb…
Gluttony – Million dollar $alaries = Peanuts diet to them… Not full enough! Add 8.8% of butter will be just nice for now! but their tummy will grow in time for bigger appetite hor… which is why we are constantly buttered!
History in the Making of SINKAPUT!!!
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SIR STAMFORD RAFFLES will rise from his grave and slaughter all these gambling dens and our STUPID gahmen.
Same as what Raffles had done to William Farquhar.
The spirit of SIR STAMFORD RAFFLES still lives.
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