Youbet.com Q4 Report Shows Positive Cash Flow
Youbet.com Inc. (UBET), in its fourth-quarter report that was released Monday, announced it has reached the first positive cash flow as measured by EBITDA in the company's seven-year history. Youbet.com is reporting EBITDA for the fourth quarter of 2002 of $226,000, which represents an increase of $1 million from the third quarter of 2002 and an increase of $4.5 million from the fourth quarter of last year.
The Woodland Hills, Calif.-based company states that its handle rose 72 percent to $163 million from $95 million last year. Chuck Champion, the company's CEO and president, said the group has made significant strides in the past year.
"We entered 2002 with our monthly cash burn in the preceding year exceeding $500,000, carrying the content of less than 75 percent of the significant racetracks on our proprietary Web site," he said. "We were unlicensed in our home state of California. We closed the year with positive cash flow in the fourth quarter, delivering every significant racetrack in the U.S., plus a multi-year license in California."
CFO Gary Sproule said fourth-quarter revenue increased to $3.2 million from $1.4 million in the fourth quarter of last year due to an increase in the number of wagers placed at the company's Oregon wagering hub.
"Fourth quarter total operating expenses were $3 million compared to $5.9 million in the fourth quarter of 2001," Sproule said. "In the fourth quarter of 2001 we recorded a one-time write-off of $2.4 million due to the termination of various Nevada gaming project"
Sportingbet Watches European Section Grow
Sportingbet (SBT) said this week that its European operations have generated a profit five months before the online wagering company expected them to.
The U.K.-based group's customer base in Europe increased by 19 percent to 30,915 during the quarter ending Dec. 31. In addition, the total number of bets increase by one million over the previous year's quarter.
Nigel Payne, Sportingbet's chief executive, said the results were unexpected.
"We are growing in Europe faster than originally planned," he said. "We are growing bigger and faster and we also managed to get good trading margins."
Ten percent of the company's group sales originate from its United Kingdom operations. For the quarter ending Dec. 31, Sportingbet is posting a pre-tax profit of £5.6 million, up from £4.8 million during the same period last year.
Reports Released
MGM Mirage (MGG) is announcing adjusted earnings per diluted share of 28 cents during the fourth quarter of this year. That compares with 18 cents per share during the fourth quarter of last year. The company owns an online casino licensed in the Isle of Man.
MGM Mirage (MGG) - Fourth-Quarter Report
Kerzner International Ltd. (KZL) reported recurring net income for the fourth quarter of $4.7 million, which compares to a net loss of $5.3 million last year. Along with its fourth-quarter results, the company announced that its subsidiary Kerzner Interactive is leaving the online gambling business. Kerzner International said it has not decided what the fate of Kerzner Interactive will be yet, only that it will no longer operate the online version of Casino Atlantis.
Kerzner International Ltd. (KZL) - Fourth-Quarter Report
Multimedia Games Inc. (MGAM) is reporting basic earnings per share of 58 cents and diluted earnings per share of 50 cents for the first quarter of its fiscal 2003. Those figures represent increases from 50 cents per share for basic earnings and 33 cents per share for diluted earnings.
Multimedia Games Inc. (MGAM) - First-Quar