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LAS VEGAS-Wynn Resorts Ltd. reported preliminary second quarter results today along with a potential $500-million increase in its stock buyback program. It is also consulting financial agencies for a second listing of the company in Hong Kong, according to a report in the South China Morning Post.

The company says operating income at Wynn Las Vegas on a GAAP basis will come in somewhere between $18 million and $22 million, a two-thirds decrease from the second quarter of 2007, when operating income was $63.4 million on a GAAP basis.

Adjusted property EBITDA is expected to be between $80 million and $84 million for the second quarter of 2008, compared to $115.3 million for the second quarter of 2007. The decline is partially attributable to a 20.4% hold percentage in the quarter, which was 24.2% in 2Q07.

The property’s normal hold percentage range is 21% to 24%. Money spent on table games also decreased 12.1% compared to 2Q07 to $493.6 million and slot machine handle fell 12.7% compared to 2Q07 to $852.6 million.

The ADR for the quarter was $302 for the quarter, compared to $311 during 2Q07. The property’s occupancy was 96.5%, down 150 basis points from 97.0% during 2Q07. RevPAR was $292, 3% below 2Q07.

Operating income for Wynn Macau is expected to come in between $100 and $106 million, as much as double the $53.2 million produces in 2Q07. Adjusted property EBITDA is expected to be in the range of $152 million to $158 million in the second quarter of 2008, compared to $92.7 million in 2Q07.

With regard to the stock buyback, Wynn says its board of directors authorized a $500-million increase in its previously announced $1.2-billion equity repurchase program. With regard to a secondary listing in Hong Kong, South China Morning Post, citing unnamed sources, says Wynn already has retained USB, Deutsche Bank and Morgan Stanley to advise on the possible listing, which could generate a few billion for the company to continue its expansion.

Wynn Resorts recently acquired a 52-acre site on the Cotai strip for a development that would include 1,500- to 1,800 rooms and get under construction next year. The property is a one-time landfill that sits between two outlying islands. Wynn also is planning to add to Wynn Macau with a 400-room tower called Encore, just like its addition in Las Vegas. That project is slated to open in 2010.

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