American online horseracing and wagering service YouBet.com has reported its financial results for the previous quarter showing gross profits of $11.187 million, a rise of 0.8 percent over the same period last year.
However, total revenues for the California firm dropped by 12.1 percent to $29.318 million for the quarter compared to 2007 due to a twelve percent drop in earnings from its YouBet Express service to $23.365 million. The company’s principle product, YouBet Express offers real-time audio and video broadcasts but saw its gross profits rise 6.9 percent to $8.956 million despite the decline in revenues. YouBet.com stated that this was down to its efforts at shifting to higher-yielding content as well as a reduction in licensing costs. This improvement in gross profits along with reduced operating expenses resulted in income from continuing operations of $3.7 million.
For the third quarter, total revenues from its United Tote service dropped 12.1 percent, primarily as a result of a track closing, contract losses and lower handles on existing contracts. YouBet.com revealed that this decrease was mitigated by a year-over-year decrease in operating expenses while United Tote’s losses from operations for period amounted to $500,000, which was essentially flat with the loss from operations in the third quarter of 2007.
“We are pleased to report a third consecutive quarter of profitability,” said Michael Brodsky, Chief Executive Officer for YouBet.com.
“By aligning our expense structure with our business model, we are confident that YouBet.com will be able to enjoy continued profitable growth.
“Going forward, we remain focused on growing our handle and, equally important, our net track revenues at YouBet Express as well as maximising our margins at United Tote.”