{"id":118081,"date":"2019-10-24T08:45:35","date_gmt":"2019-10-24T15:45:35","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=118081"},"modified":"2019-10-24T10:43:16","modified_gmt":"2019-10-24T17:43:16","slug":"sands-exec-says-japan-project-likely-to-cost-at-least-10-billion","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/sands-exec-says-japan-project-likely-to-cost-at-least-10-billion\/","title":{"rendered":"Las Vegas Sands President Goldstein Says $10 Billion Could be The Floor For Japanese Integrated Resort"},"content":{"rendered":"

Las Vegas Sands Corp. (NYSE:LVS) held its third-quarter earnings conference call after the close of US markets Wednesday. But the numbers grabbing some investors’ attention aren’t just the 69 cents a share the company earned in the period on revenue of $3.25 billion.<\/p>\n

\"\"
Las Vegas Sands COO Rob Goldstein sees Japan costs being in the neighborhood of $10 billion or more. (Image: Bloomberg)<\/figcaption><\/figure>\n

It’s also president and COO Rob Goldstein’s estimate of $10 billion to $12 billion to build an integrated resort in Japan, figures that CFO Patrick Dumont said on the call could ultimately prove to be \u201clight.\u201d<\/p>\n

The reference point that you make is very, very well thought-out, $10 billion, $12 billion, it does give you pause and no matter what,\u201d said Goldstein in response to a question from Barclays analyst Felicia Hendrix on the call.<\/p><\/blockquote>\n

Those projections jibe with what some industry analysts have previously said about construction costs associated with building integrated resorts in the Land of the Rising Sun. Last month, a team of analysts from Fitch Ratings returned from a Japan trip and boosted their cost estimate for casino projects there to $10 billion to $15 billion<\/a> from a previous ceiling of $10 billion.<\/p>\n

Dumont emphasized $10 billion is a likely starting point for a casino-resort in \u201cprime city locations.\u201d Sands is focusing its Japan efforts on Tokyo and Yokohama, but other operators believe they can execute projects in smaller Japanese metropolitan areas for significantly less capital<\/a>.<\/p>\n

Likely Sands’ Most Expensive Project<\/h2>\n

Assuming LVS is one of the companies selected to build a gaming property in Japan, something analysts believe will happen, and that costs can be contained to $10 billion, the project is still likely be the priciest in company history.<\/p>\n

\n

Goldstein recalled that when the company built the Venetian on the Las Vegas Strip 20 years ago, that cost $1 billion, and that today, \u201cit seems kind of comical thinking back on it today, that you can nearly build a nightclub today for $200 million in this town.\u201d<\/p>\n<\/div>\n

The executive added that the cost of one Japanese integrated resort could exceed the total LVS spent on its five Macau properties<\/a>.<\/p>\n

\u201cI mean, the cost of building in Japan is a big issue, and the way the deals are structured, it’s a challenge,\u201d said Goldstein on the call. \u201cAnd we’re the guys who — we spent $6 billion years ago, and we spent 13 or 14 and 15, we were used to writing big checks. But, all that money one IR does make, you stop and pinch yourself and say, can you get the returns that your shareholders deserve?\u201d<\/p>\n

It’s About More Than Costs<\/h2>\n

As of Sept. 30, Sands had $3.82 billion in cash on hand, and investment-grade credit marks from all three major ratings agencies, implying the company has the financial flexibility to handle the aforementioned Japan costs.<\/p>\n

Return on invested capital (ROIC) is integral to evaluating the potential success of Japanese casino projects. LVS Chairman and CEO Sheldon Adelson, who participated in yesterday’s earnings call, his first this year, has previously targeted ROIC in Japan of 20 percent.<\/p>\n

In the third quarter, Sands generated earnings before interest, taxes, depreciation and amortization (EBITDA) of $755 million and $455 million, respectively, from its Macau and Singapore properties. Japan EBITDA would likely need to be in the middle of those numbers or higher to achieve LVS’ ROIC goals.<\/strong><\/p>\n

Adelson is battling non-Hodgkin\u2019s lymphoma, but his appearance on the Wednesday earnings call was meaningful in the eyes of some of the analysts, who said investors’ concerns about the CEO’s health could be assuaged by his participation. Shares of LVS are up nearly four percent at this writing.<\/p>\n","protected":false},"excerpt":{"rendered":"

Las Vegas Sands Corp. (NYSE:LVS) held its third-quarter earnings conference call after the close of US markets Wednesday. But the numbers grabbing some investors’ attention aren’t just the 69 cents a share the company earned in the period on revenue of $3.25 billion. It’s also president and COO Rob Goldstein’s estimate of $10 billion to […]<\/p>\n","protected":false},"author":46,"featured_media":118083,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,33810],"tags":[],"acf":[],"yoast_head":"\nSands Exec Says Japan Project Likely to Cost at Least $10 Billion<\/title>\n<meta name=\"description\" content=\"Las Vegas Sands executive says it could cost $10 billion or more to build an integrated resort in Japan, making the project the company's most expensive.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/sands-exec-says-japan-project-likely-to-cost-at-least-10-billion\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sands Exec Says Japan Project Likely to Cost at Least $10 Billion\" \/>\n<meta property=\"og:description\" content=\"Las Vegas Sands executive says it could cost $10 billion or more to build an integrated resort in Japan, making the project the company's most expensive.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/sands-exec-says-japan-project-likely-to-cost-at-least-10-billion\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2019-10-24T15:45:35+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-10-24T17:43:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/10\/RG.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/sands-exec-says-japan-project-likely-to-cost-at-least-10-billion\/\",\"url\":\"https:\/\/www.casino.org\/news\/sands-exec-says-japan-project-likely-to-cost-at-least-10-billion\/\",\"name\":\"Sands Exec Says Japan Project Likely to Cost at Least $10 Billion\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/sands-exec-says-japan-project-likely-to-cost-at-least-10-billion\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/sands-exec-says-japan-project-likely-to-cost-at-least-10-billion\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/10\/RG.jpg\",\"datePublished\":\"2019-10-24T15:45:35+00:00\",\"dateModified\":\"2019-10-24T17:43:16+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Las Vegas Sands executive says it could cost $10 billion or more to build an integrated resort in Japan, making the project the company's most expensive.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/sands-exec-says-japan-project-likely-to-cost-at-least-10-billion\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/sands-exec-says-japan-project-likely-to-cost-at-least-10-billion\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/sands-exec-says-japan-project-likely-to-cost-at-least-10-billion\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/10\/RG.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/10\/RG.jpg\",\"width\":1920,\"height\":1080,\"caption\":\"Las Vegas Sands COO Rob Goldstein sees Japan costs being in the neighborhood of $10 billion or more. (Image: Bloomberg)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/sands-exec-says-japan-project-likely-to-cost-at-least-10-billion\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Commercial Gaming\",\"item\":\"https:\/\/www.casino.org\/news\/commercial-gaming\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Las Vegas Sands President Goldstein Says $10 Billion Could be The Floor For Japanese Integrated Resort\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Sands Exec Says Japan Project Likely to Cost at Least $10 Billion","description":"Las Vegas Sands executive says it could cost $10 billion or more to build an integrated resort in Japan, making the project the company's most expensive.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/sands-exec-says-japan-project-likely-to-cost-at-least-10-billion\/","og_locale":"en_US","og_type":"article","og_title":"Sands Exec Says Japan Project Likely to Cost at Least $10 Billion","og_description":"Las Vegas Sands executive says it could cost $10 billion or more to build an integrated resort in Japan, making the project the company's most expensive.","og_url":"https:\/\/www.casino.org\/news\/sands-exec-says-japan-project-likely-to-cost-at-least-10-billion\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2019-10-24T15:45:35+00:00","article_modified_time":"2019-10-24T17:43:16+00:00","og_image":[{"width":1920,"height":1080,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/10\/RG.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/sands-exec-says-japan-project-likely-to-cost-at-least-10-billion\/","url":"https:\/\/www.casino.org\/news\/sands-exec-says-japan-project-likely-to-cost-at-least-10-billion\/","name":"Sands Exec Says Japan Project Likely to Cost at Least $10 Billion","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/sands-exec-says-japan-project-likely-to-cost-at-least-10-billion\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/sands-exec-says-japan-project-likely-to-cost-at-least-10-billion\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/10\/RG.jpg","datePublished":"2019-10-24T15:45:35+00:00","dateModified":"2019-10-24T17:43:16+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"Las Vegas Sands executive says it could cost $10 billion or more to build an integrated resort in Japan, making the project the company's most expensive.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/sands-exec-says-japan-project-likely-to-cost-at-least-10-billion\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/sands-exec-says-japan-project-likely-to-cost-at-least-10-billion\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/sands-exec-says-japan-project-likely-to-cost-at-least-10-billion\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/10\/RG.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/10\/RG.jpg","width":1920,"height":1080,"caption":"Las Vegas Sands COO Rob Goldstein sees Japan costs being in the neighborhood of $10 billion or more. (Image: Bloomberg)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/sands-exec-says-japan-project-likely-to-cost-at-least-10-billion\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Commercial Gaming","item":"https:\/\/www.casino.org\/news\/commercial-gaming\/"},{"@type":"ListItem","position":3,"name":"Las Vegas Sands President Goldstein Says $10 Billion Could be The Floor For Japanese Integrated Resort"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/118081"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=118081"}],"version-history":[{"count":0,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/118081\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/118083"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=118081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=118081"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=118081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}