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CR82-p44,46&47-Business:SJC-Casino Review 26/7/09 10:00 Page 2
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Bosses missed bonuses
The former and current CEOs of MGM Mirage,
Business
respectively Terry Lanni and Jim Murren (pictured), both
received less money from the company in 2008 than
previously, as missed profits targets took out bonus
payments. Lanni, who resigned in November, earned
$5.8m (E4.2m) in 2008, 40 per cent less than in 2007.
NEWS Murren, promoted from COO, earned $3.7m (E2.7m),
$1m less than the previous year.
Sands to move
More than a million
visitors in under a
month at the City of
Dreams
on fundraising
within months
Dreams complex has been [Theirs] is to pay off their debt
“Not worried”:
quiet since last November through profits generated
Sheldon Adelson,
when Sands placed a morato- through operations. Our busi-
Over a million
chairman and CEO
of Las Vegas Sands
rium on construction in order ness model calls for us selling
to save money. our non-core assets and
(lucky) visitors
“We need mortgage paying off our debt, so that in
finance and then we want a normal marketplace, where
equity, so altogether it could we could sell at reasonable at CoD
be $3bn-$4bn. Whatever we capitalisation rates, we should
do is going to happen this pay off all our financing.”
year.” Neither the failure so far to earlybirds
Adelson was clear that find a buyer for the non-core MELCO CROWN
while an IPO of part of the asset that is the retail opera-
Macau operation was proba- tion at the Venetian Macau, Despite attracting well over one million visitors through
bly on the Hong Kong Stock nor the very abnormal mar- its doors in its first month of operation, City of Dreams
Exchange was one of the ketplace, is giving Adelson has failed to provide an instant boost to revenues,
options, it has not been deter- any cause for concern. operator Melco Crown has reported.
mined as the final one. However, as and when the Some analysts have taken these initial
Company president global economy does pick up, disappointing few weeks as an indication of more
Michael Leven added in an provided Las Vegas Sands has trouble ahead and both the share price and
interview with Bloomberg managed to keep hold of all recommendations suffered accordingly.
Television that the company its core assets, it will be in a While the total rolling chip volume for the month was a
will decide which route to position to profit from them fair US$1.94bn (E1.39bn), with figures getting stronger
take in July. And he noted: “The more than ever before with every successive week, the hold was a long way below
market has been good and its new resorts. As one of the target at 0.8 per cent: the casino is aiming for a hold of at
With its huge debt
whowillbuy attractive for IPOs, particu- two concessionaires in Singa- least 2.85 per cent but players at the average127 VIP
burden and still
LAS VEGAS SANDS larly in Asia.” pore, it is hoping that the gaming tables in operation were just much, much luckier
The company hired much anticipated opening of than is normally expected. There was a similar story at
unfinished projects,
Having held his counsel when Goldman Sachs in May to this new market will live up Altira Macau, where the two per cent hold of $2.76bn
Las Vegas Sands
the rumours of a Macau IPO advise it on a possible offer- to expectations and not can- (E1.98bn) was also below normal.
must find a lot of
emerged a couple of months ing in Hong Kong. nibalise its other Asian inter- On the 376 mass-market tables operating on average
ago, the chairman and CEO of While some of any money ests too much. at the new casino, which has been designed to develop
money soon from
Las Vegas Sands Sheldon raised would be used to com- The company has also that sector of the market strongly, there was a drop of
somewhere. With
Adelson has said that the plete the project in Macau, announced that the very $100m (E71.8m) from which the company reported a hold
several options on
company will undertake most of it would go to paying recently topped-out and within its 16-18 per cent target range.
the table, Sheldon
moves to raise up to $4bn off the huge $10.5bn (E7.5bn) budget-overrunning Marina Co-chairman of Melco Crown, Lawrence Ho, said
(E2.9bn) from its operations debt burden the company has Bay Sands in Singapore will before the opening that there was a lot riding on the
Adelson and his in Macau this year. acquired through its aggres- now open a couple of months success of the venue. He said: “We know the pressure is
board will be making
Speaking to CNBC, Adelson sive expansion plan in the last later than planned, in January on us. The success of it will have major implications.”
a decision about
said than an IPO was one of several years - much of the or February of 2010, giving it Little real indication of how the resort will fare can be
the ideas on the table: “We debt doesn’t mature until a much shorter head-start on gleaned from its first few weeks: the number of visitors
how this month. have five or six different 2011, which is giving the the Sentosa project being coming through the door is a comfort - what the
options: we have private company some breathing developed by Genting. company calls a “solid foundation”. All it needs to do
equity options, two options space to find the now is
with builders who want to necessary. persuade
put up mortgage money and “Do I look more of them
equity money to finish lots worried?” said to play and
five and six, which will be a Adelson. “I’m not hope that
transforming event for worried. Our Luck doesn’t
Macau.” business model is smile too
The building site opposite totally different broadly on
the company’s Venetian from the business them.
Macau resort and next to the model of our
recently opened City of competitors.
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46 August 2009 • businessnews
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