Youbet.com, Inc. (NASDAQ: UBET), a diversified provider of technology and pari-mutuel horse racing content for consumers through Internet and telephone platforms, and a leading supplier of pari-mutuel wagering services and systems, recently announced the company’s results for the second quarter ending June 30, 2008. Shares of Youbet.com moved higher earlier this week after the release of the news, marking the company’s second straight quarter of profitability.
Total revenues declined to $29.2 million for the quarter, compared to $33.3 million during the second quarter of 2007, but quarterly adjusted income from continuing operations before income taxes reached $3 million, up from $0.4 million during the prior-year period. Despite the decline in revenue, gross profit posted a 10 percent year-over-year increase from the second quarter of 2007 due to the company’s shift to higher-yielding content, along with a reduction in network costs.
Moving into the second half of the year, YouBet.com will continue to focus on sustained profitability and growth. The company will also continue to effectively manage operating costs while improving yields. Given the current status of the economy and the overall gaming industry, management is cognizant of costs but believes that cash flows from operations and unrestricted cash and cash equivalents are sufficient to fund working capital and capital expenditure requirements for the next 12 months.
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