NEWS
Youbet.com reports increased net income
Posted: Thursday, March 18, 2010 2:43 PM
Revenues at Youbet.com Inc. increased by 2.2% during the year ended December 31, 2009, even as revenue during the fourth quarter that year declined 2.7%.
The fourth quarter results included an $8.1-million income tax benefit while fourth quarter 2008 results included an $11.2 million impairment charge. Those adjustments skewed the company’s net income picture considerably.
Fourth quarter net income of $8,467,000 represented a 185% increase from 2008 when Youbet.com was $9,923,000 in the red. Similarly for all of 2009, Youbet.com net income increased 361% to $4,451,000. In 2008 it lost $4,451,000.
“We are pleased with our fourth quarter results given the strong economic headwinds facing the overall horse racing and pari-mutuel industry,” said Youbet.com President David Goldberg. “In the fourth quarter, the number of weekly unique wagerers increased 7%. However, due to economic pressures, the average handle per unique weekly wagerer decreased 7% versus the prior-year quarter.
“Looking at the full year 2009, we increased Youbet Express handle by 10% while the industry declined approximately 10%, all while improving many key features on our best-in-class wagering platform. We added new players and significantly increased the number of active wagerers playing on the Youbet Express system by 15% year-over-year. We believe that the increase in players on the system is a positive leading indicator which positions the company well as the economy begins to turn around.”
Youbet.com stockholders will vote on April 6 whether to merge with Churchill Downs Inc. The $126.8-million merger would give Youbet.com stockholders a 16% stake in the Louisville-based racetrack gaming company that operates four racetracks plus the TwinSpires.com account wagering platform and Bloodstock Research Information Systems.
