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LAS VEGAS-Wynn Resorts Ltd. reported a third quarter profit due to a nearly $900 million gain from the sale of a subconcession right to develop a casino in Macau. The operator of the 18-month-old Wynn Las Vegas and the two-month-old Wynn Macau reported a third quarter net income of $715.7 million, or $6.43 per share, on revenue of $318.1 million. The third quarter of 2005 produced a loss of $9.2 million, or $0.09 per share, on revenue of $251.4 million.

Excluding the sale of the subconcession right and other special items, Wynn lost $1.3 million or $0.01 per share in the third quarter of 2006. When computed the same way, third quarter 2005 numbers show a loss of $2.2 million, or $0.02 per share. Analysts’ average expectation was for a profit of $0.06 per share on revenue of $301 million.

With Wynn Resorts still heavy into its development stage, analysts’ expectations don’t mean as much, apparently. Shares of Wynn Resorts were trading at $77.80 Wednesday afternoon, up nearly $3.00 on the day.

Construction for the second phase of Wynn Macau is ongoing and will include more casino and retail space, including two more restaurants and a theater. As well, work is ongoing for Encore, the $1.74-billion, 2,042-room second phase of Wynn Las Vegas.

Operating income from Wynn Las Vegas, which opened in April 2005, grew to $22.4 million in the third quarter from $21.9 million in the same 2005 quarter. Wynn cited increased casino and hotel revenue and better performance by its nightclub.

Wynn Macau, which opened its first phase in early September, the last month of the third quarter, produced an operating loss of $43.1 million. The same quarter one year earlier, the property posted a loss of $8.6 million. In its first 25 days of operation, Wynn Macau generated net revenue of $45 million and $2.3 million in EBITDA.

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