Youbet.com Turns Profitable in First Quarter
Updated: Thursday, April 29, 2004 1:03 AM
Posted: Tuesday, April 27, 2004 10:19 AM
Youbet.com turned a profit for the first time in its history during the first quarter of 2004. The account-wagering company, which lost $1.2 million during the first quarter of 2003, had a net profit of $15,111 during this year's corresponding session.
Youbet had net revenue of $5.4 million during the first three months of the year, making it the ninth consecutive quarter of revenue growth. Net revenue was up 43% from the first quarter of 2003.
"For the first time in Youbet's history, we have crossed the line into profitability," said Youbet chief executive officer Chuck Champion. "Although we are exuberant at reaching the long-sought goal, we are equally enthused that Youbet is now ideally positioned for independent expansion and growth."
Earning before interest, taxes, and depreciation increased 136% to $1.1 million for the quarter. Gross handle increased 18% to $72 million.
Also during the first quarter, Youbet settled a dispute with minority shareholder TV Games Network. As a result of the settlement, TVG surrendered its warrant in Youbet, and Youbet agreed not to seek stockholder approval of certain charter and bylaw amendments.
"Three clear shareholder benefits emerge from the completion of our financial turnaround and our settlement with TVG," Champion said. "First, we believe we will now gradually attract a wider and more diverse audience within the investment community. Second, our international strategic and tactical expansion can proceed at a more deliberate and confident pace. And third, we will be scheduling Youbet's annual stockholders meeting."
Youbet's stockholders meeting had been delayed because of the dispute with TVG.
Youbet had operating expenses of $4.3 million as compared to $3.3 million in 2003's first quarter.
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