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Wynn Resorts Posts Earnings Beat as Guests Return

Wynn Resorts says its Q2 results highlight 'the significant pent-up demand for travel and leisure experience.'

Wynn Resorts  (WYNN) - Get Wynn Resorts, Limited (WYNN) Report on Wednesday beat Wall Street's second-quarter expectations as the gambling company saw a strong return of guests to its Las Vegas and Boston Harbor locations.

Shares of the Las Vegas company at last check were up slightly to $91.60.

Wynn Resorts narrowed its net loss to $131 million, or $1.15 a share, from $637.6 million, or $5.97 a share, in the year-earlier quarter. The adjusted loss for the latest quarter came to $1.12 a share.

Revenue totaled $990.1 million, up from $85.7 million a year ago.

A FactSet consensus called for a loss of $1.55 a share on revenue of $916 million. The stock has been down nearly 20% year-to-date.

Meanwhile, authorities in Macau on Wednesday ordered gyms, bars, cinemas, nightclubs and other entertainment venues to close after a family of four was confirmed to have the Delta variant of COVID-19.

Casinos were allowed to remain open for the time being. The last time Macao closed its amusement venues, including casinos, was in February 2020, the shutdown lasted for 15 days.

Wynn said that "we are currently unable to determine when and what additional measures may be introduced."

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The casino industry, like most of the economy, is recovering from the pandemic shutdown, which began in March 2020.

"We were pleased to see the strong return of our guests at both Las Vegas and Boston Harbor during the second quarter with adjusted property Ebitda at our operations well above pre-pandemic levels, highlighting the significant pent-up demand for travel and leisure experience," Chief Executive Matt Maddox said in a statement.

Maddox added that "while there have been some fits and starts along the road to recovery in Macau, we were encouraged by the strong demand we experienced during the May holiday period, particularly in our premium mass casino and luxury retail segments."

On the development front, Maddox said, "our WynnBET online casino and sports betting app is currently available in six states with additional launches planned over the coming months."

Separately, a federal judge in Nevada revived elements of a securities fraud lawsuit seeking class-action status for allegations that executives at Wynn Resorts knew about, but disregarded, reports of sexual harassment and misconduct against company Founder Steve Wynn, the Associated Press reported.

U.S. District Judge Andrew Gordon ruled the case can go forward. The case alleges that Steve Wynn, board members and top executives at the Las Vegas company violated Securities and Exchange Commission laws and rules through “material misrepresentations and omissions.”

Wynn, 79, resigned as chairman and chief executive.

In May, Wynn reported reported a narrower first-quarter net loss on 24% lower revenue, which was weaker than Wall Street analysts had estimated

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