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Wynn Resorts Ltd. Posts Robust 2nd Qtr Net Income, It's
 Casinos in Macau Offset Las Vegas Losses

Will Spend $99 million to Remodel All 2,700 Rooms at the 5-year-old Wynn Las Vegas
By Howard Stutz, Las Vegas Review-JournalMcClatchy-Tribune Regional News

July 30, 2010 --Wynn Resorts Ltd. benefited from a robust second quarter at the company's casinos in Macau to offset losses on the Strip.

The Las Vegas-based casino operator reported net income of $52.4 million, or 42 cents per share, for the three month-period that ended June 30. A year ago, Wynn earned $25.5 million, or 25 cents a share.

At Wynn Macau and Encore at Wynn Macau, the two resorts collected $723.3 million in revenues, a jump of 74 percent from $410.4 million in the same quarter a year ago. Encore at Wynn Macau opened on April 21 with 410 suites and a casino expansion.

Companywide revenues, which includes Wynn's two Strip resorts, was $1.03 billion, up from $723.3 million in the same quarter a year ago.

Wynn announced the company's Las Vegas second-quarter earnings last week, saying the two Strip casinos lost $17.2 million during the period.

Wynn Resorts Chairman Steve Wynn said Thursday the company's Macau casinos picked up a larger piece of the Chinese gambling market after Encore opened.

"Prior to the opening of Encore, we had 8.5 percent of the equipment and 13 of the revenues from the market," Wynn said during a conference call with analysts. "Now, we have 10 percent of the equipment and 16 to 17 percent of the revenue. We are on our way to the best year in this company's history, or in the history of any company I've ever been involved with."

Macquarie Securities gaming analyst Chad Benyon said the only issues facing Wynn in Macau might be additional capacity added to the Cotai Strip because of planned developments by Las Vegas Sands Corp.

"The Asian marketplace is extremely deep and Wynn is still just scratching the surface of demand," Benyon told investors. "We find solace in the fact that recent meetings in China suggest the government is comfortable with the extraordinary growth at this moment."

During the conference call, Wynn told listeners he had completed preliminary designs of the company's next hotel-casino in Macau, planned for a 52-acre site on the Cotai Strip. In previous comments, Wynn said he didn't expect the project to be completed by 2014.

He said he thought he might be able to share some proposed renderings by the company's fourth-quarter earnings call early next year.

Wynn added that after completing preliminary designs, the company had 12 acres left over, which could be used for further development.

"It will be a chance for us to expand or add other things to make Macau more attractive," Wynn said.

Despite the focus on Macau, Wynn said the company will spend $99 million to remodel all 2,700 rooms at the now 5-year-old Wynn Las Vegas. The project is expected to be completed by the spring.

The Wynn Las Vegas baccarat pit will be remodeled and two restaurants will be added to the resort.

"Wynn Las Vegas will be spruced up from the golf course to the Strip by next spring," Wynn said.

Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.

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Copyright (c) 2010, Las Vegas Review-Journal

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