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LAS VEGAS-Wynn Resorts said Thursday said its second quarter GAAP profit tripled as higher earnings from Wynn Macau and a large deferred tax benefit more than offset a drop in casino and hotel revenue at Wynn Las Vegas. GAAP profit for the quarter was $272 million ($2.42 per share), up from $89.6 million ($0.82 per sf) in Q2 2007. Net revenue in Q2 2008 was 825.2 million, up from $687.5 million in Q2 2007.

The increase in revenue was driven primarily by a 50.3% increase in revenue at Wynn Macau. The increase in profit is attributed to higher earnings from Wynn Macau and a $140.7-million deferred tax benefit recorded during the quarter. Adjusted Q2 2008 profit was $124.3 million ($1.11 per share), up from $100.8 million ($0.92 per share) in Q2 2007.

Casino revenues at Wynn Las Vegas in Q2 2008 were $120.7 million, down from $159.4 million in Q2 2007. Non-casino revenues for the quarter were $211.9 million, a 0.3% increase from the Q2 2007. Hotel revenues were down 3.1% to $72.1 million during the quarter. The Average Daily Rate was $302, down from $311 in Q2 2007, and occupancy was 96.5%, down from 97% in Q2 2007. RevPAR was $292, off 3% from Q2 2007. Retail sales declined 3.5% to $22.1 million. Entertainment revenue rose slightly to $18.9 million. The only non-casino segment with a noticeable increase in revenues was food and beverage, which rose 2.6% from Q2 2007 to $84.3 million in Q2 2008.

In Wynn Macau, which in December was expanded by 75,000 sf of gaming space and 20,000 sf of retail in December, the numbers were all positive in Q2 2008. Net revenue at Wynn Macau was $529.9 million, up from $352.5 million in Q2 2007. The amount of money bet on table games by VIPs totaled $16.3 billion in Q2 2008, a 74.9% increase from Q2 2007, with Wynn keeping 2.96%. Table games betting by non VIPs totaled $626.9 million, up 24.7% from Q2 2007. Slot machine win, due to a tripling of the number of machines, increased 89.6% in Q2 2008 compared to Q2 2007.

On the non-casino side, Wynn Macau achieved an ADR of $277 for the quarter, compared to $258 in the second quarter of 2007. The property’s occupancy was 87.9%, compared to 86.2% during the prior year period. RevPAR was $244, up 9.9% from Q2 2007.

On the development front, Wynn Resorts is busy developing its Encore buildings at each property. Encore Las Vegas is expected to open at the end of the year with an 2,034-unit, all–suite hotel tower with a 72,000 sf casino, additional convention and meeting space, as well as restaurants, a nightclub, swimming pools, a spa and salon and retail outlets. The project budget is approximately $2.3 billion for Encore and related capital improvements, of which $1.5 billion has been spent. During Thursday’s conference call with analysts, when asked about a recent $100-million increase in the cost of the project, Wynn said: “The project is bigger; we added more stuff.”

Encore at Wynn Macau will add 400 luxury suites and four villas along with restaurants, additional retail and gaming space to an existing base that includes 600 hotel rooms and suites, 205,000 sf of casino gaming space, five restaurants, a spa and salon, lounges, meeting facilities and 46,000 sf of retail space. Encore will add approximately 400 luxury suites and four villas along with restaurants, additional retail and gaming space. Construction on the $700-million development began in 2007 and will be complete in the first half of 2010.

Beyond that, Wynn Resorts is in design for new product in China and Las Vegas. Wynn told analysts on Thursday that the company was currently envisioning what it will do with its property on the so-called Cotai Strip, an area of Macau, and redeveloping the golf course at Wynn Las Vegas.

“Our project is taking shape to be quite different from anything that we’ve ever done before or exists,” Wynn said. “We are developing a notion for both places but undoubtedly Cotai will be first.”

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