Yourbet.com - Revenue improves

Wednesday, April 16, 2003 | 11:34 a.m.

WOODLAND HILLS, Calif. -- Online wagering company Youbet.com posted record fourth-quarter revenue of $9.1 million on Tuesday while narrowing its quarterly loss.

The firm is finally changing its financial direction, experts say. For the quarter ended Dec. 31, the company reported a loss of $1.4 million, equal to 2 cents a share, down from a loss of $5.5 million, or 28 cents in the comparable period a year ago.

Based in Woodland Hills, about 25 miles northwest of Los Angeles, the company reduced the quarterly loss by $4.1 million.

"Youbet saw some pretty lean times in the past," said Mark Balestra, a gaming consultant and vice president with The River City Group in St. Louis, Mo. "They just were not a well-run company. But Californians have more access to gambling online now. So it doesn't surprise me that Youbet's getting back on track."

Balestra said Youbet is benefiting from a California law that enables consumers to wager online. Known as "advance deposit wagering," the state granted Youbet a license to accept wagering from account holders who deposit money and fund wagers via the company's Web site.

Youbet's fourth-quarter 2002 handle was $50 million, compared with $19.8 million in 2001.

Youbet shares rose 33 cents, or 15.4 percent, to close at $2.48 Tuesday on the Nasdaq market.