05/08/2007 11:00PM

Youbet posts substantial gains


Youbet.com, the online account-wagering and bet-processing company, had net income of $1.59omillion in the first quarter of 2007, up 17 percent compared with net income of $1.35 million in the first quarter last year, according to financial statements released late on Monday.

Revenues in the quarter were $35omillion compared with $27.8 million last year, an increase of 26 percent. Of the increase, approximately $3omillion was from increased commissions on handle through International Racing Group, Youbet's offshore rebate shop, and another $2omillion was from increased handle from Youbet.com. Another $2.25omillion of the growth came from contract revenues from Youbet's bet-processing company, United Tote, according to the statements.

Handle through IRG in the quarter was $87.4 million, up 101 percent compared with $43.5 million in the first quarter of 2006. Youbet officials said that the increase was due to the implementation of computerized robotic wagering at IRG since the first quarter of 2006. Computerized robotic wagering allows a customer to hook up a sophisticated computer analysis program to the bet-processing system.

Handle through Youbet's Oregon-based platform in the quarter was $114.6 million, a 10.9 percent increase compared with the previous first quarter.

Youbet's stock closed at $2.99 on Wednesday, up 13 cents, or 4.6 percent, compared with the Tuesday close, on trading volume of 1.1 million shares. The stock's average trading volume over the past three months has been 291,000 shares a day.

Earlier this year, Youbet's board approved a plan that would allow the company to spend $10 million to buy back shares of stock. Company officials said Youbet had not purchased any of its own shares on Wednesday.