Youbet.com Reports Reduced Loss for Period

Youbet.com on Wednesday posted a loss of $3.2 million, or 17 cents per common share, for the second quarter of 2001.

Meanwhile, revenue for the second quarter rose 14% to $1.7 million compared with the same period last year, and handle derived from the company's subscriber base increased 8% to a record $28.4 million for the second quarter, compared with $26.3 million during the same quarter in 2000.

For the first six months that ended June 30, Youbet.com reported revenue of $3.4 million, a 5% increase over revenue of $3.2 million for the first half of 2000. The company narrowed its first-half loss before extraordinary item by 17% to $5.6 million for the first six months of
2001, compared to a loss before extraordinary item of $6.8 million, or 35 cents per common share, for the first six months of 2000.

During the first six months of 2000, Youbet.com recorded an extraordinary gain that resulted from the buyback and retirement of $22.95 million of its senior convertible notes at cost of approximately $12.9 million. Including the extraordinary item, the company reported net income of $533,000 for the first half of 2000.

As of June 30, 2001, Youbet.com had total assets of $21.1 million, including cash and cash equivalents of $7.3 million. Stockholders' equity totaled $18.3 million.

Also Wednesday, the company issued a statement on account wagering legislation that was signed into law in California. Youbet.com said it has 2,500 "non-wagering members" in the state.

"This is a tremendous development as it relates to our operations in California," Youbet.com chairman and chief executive officer Robert Fell said. "California residents represent the largest constituent of horse racing enthusiasts and handicappers in the U.S., contributing to a substantial portion of the pari-mutuel horse racing market. This development equates to expansive market penetration and revenue growth opportunity for Youbet.com."