he results in this release are preliminary and subject to the completion of the final financial statements, including the review of those financial statements by the company’s internal and independent accounting professionals and the company’s audit committee.
“The company owns the privileged position of representing the highest end of our market. Earning Mobil Five-Star, Michelin Red Pavilion and AAA Five Diamond designations is reflective of this high quality reputation. We remain convinced that such a reputation represents a measurable franchise notwithstanding the current market volatility”, said the company in a press release.
“Our company had a solid third quarter in both Las Vegas and Macau but we have very little visibility on future earnings due to the global economic situation and the recently imposed travel restrictions in Macau.”
On a GAAP basis, operating (loss)/income for our Las Vegas property for the third quarter of 2008 is expected to be in the range of us$2 million, compared to us$ 35.8 million in the 2007 period due primarily to the EBITDA decline and a us$ 12.5 million increase in pre-opening expense.
Adjusted property EBITDA is expected to be between us$ 68 million and us$ 72 million for the third quarter of 2008, compared to us$ 93.2 million for the third quarter of 2007. The EBITDA decline is primarily attributable to a lower hold percentage and an increase in our bad debt reserve based solely on the current global economic uncertainty.
During the quarter, table games drop increased 11.6% from the comparable period in 2007 to us$ 531 million. Table games hold decreased to 24.3% compared to 26.4% in 2007. Slot machine handle of us$ 853.8 million was 11.9% below the comparable period of 2007.
Wynn Las Vegas achieved an Average Daily Rate (ADR) of us$ 272 for the quarter, compared to us$ 282 in the third quarter of 2007. The property’s occupancy was 96.1%, compared to 96.6% during the prior year period, generating revenue per available room (REVPAR) of us$ 261 in the 2008 period (4% below the third quarter of 2007). Encore at Wynn Las Vegas, which is fully financed, remains on time and within the previously announced budget.
On a GAAP basis, operating income for Wynn Macau for the third quarter of 2008 is expected to be in the range of us$ 57 million to us$ 63 million, compared to us$ 39.2 million in the 2007 period. Adjusted property EBITDA is expected to be in the range of us$ 103 million to us$ 109 million in the third quarter of 2008, compared to us$ 92.8 million for the third quarter of 2007. EBITDA at Wynn Macau during this quarter was also reduced by an increase in bad debt reserves based solely on the current global economic uncertainty.
Table games turnover in the VIP segment increased 35.6% to us$ 13.3 billion for the period, compared to us$ 9.8 billion for the third quarter of 2007. VIP table games win as a percentage of turnover (calculated before discounts and commissions) was 3.10 %, slightly above the expected range of 2.7% to 3% and higher than the 2.96% in the comparable period of 2007.
Table games drop in the mass market category was approximately us$ 568.8 million during the period, a 19.7% increase from us$ 475.4 million in the third quarter of 2007. Mass market table games win percentage (calculated before discounts) of 20.3% was in-line with the win percentage in the third quarter of 2007 and slightly above our expected range of 18% to 20%.
Encore at Wynn Macau, which is fully financed, remains on time and within the previously announced budget. The total cash balance at the end of the quarter was us$ 1.7 billion of which approximately us$ 1.1 billion is excess cash. Total debt outstanding at the end of the quarter was us$ 4.9 billion.