05/05/2006 12:00AM

Youbet's net up on quarter

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Youbet.com, the online horse race broadcast and wagering company, had net income of $1.35 million in the first quarter of 2006, up 31 percent compared with net income of $1.03 million in the first quarter last year, according to financial documents released Thursday.

Total revenue in the quarter was $27.8 million, up 56.2 percent compared with the first quarter last year, when revenue was $17.8 million. During this year's first quarter, Youbet reported revenue of $6.4 million from two of its subsidiaries, the rebate shop International Racing Group and the bet-processing company United Tote. Both companies were acquired after the first quarter in 2005.

According to the documents, wagering handle through Youbet's Oregon-based account-wagering platform was $103.4 million, which resulted in net revenue of $8 million, or a yield of 7.8 percent. The Oregon-based handle was up 17 percent compared with handle of $88.3 million in last year's first quarter.

Handle through International Racing Group was $43.5 million, but because much of the revenue from wagers at that outlet is returned to bettors in the form of a cash rebate, the handle resulted in net revenue of $1.2 million, or a 2.7 percent yield.

Expenses at the company increased sharply in across-the-board categories, in part because of expenses associated with Youbet's new subsidiaries. Total expenses increased 50 percent in the quarter compared with last year, from $17.6 million in the first quarter of 2005 to $26.4 million this year.