Youbet.com Inc. (NASDAQ:UBET) just lost it's CEO and with shares trading at $1.02, it's about time. Like horse racing, then YouBet.com is your friend they are the internet bookie of horse racing and their stock is down over 60% in the last six months.
Despite the drop in share price, YOY revenue looks good for the legal betting online business (legal for now):
In Millions of USD (except for per share items)
|
12 months Ending 2006-12-31 |
12 months Ending 2005-12-31 |
12 months Ending 2004-12-31 |
12 months Ending 2003-12-31 |
12 months Ending 2002-12-31 |
12 months Ending 2001-12-31 |
| Revenue |
131.75 |
85.56 |
62.79 |
52.16 |
25.61 |
6.32 |
| Other Revenue, Total |
4.93 |
3.28 |
2.46 |
1.99 |
0.41 |
- |
| Total Revenue |
136.68 |
88.84 |
65.25 |
54.15 |
26.02 |
6.32 |
The former CEO Charles Champion will continue with the company to oversee a smooth transition effectively to a new CEO. He will also provide advice and assistance as requested by the Director Board.
The company employed Champion in May 2002. At that time the company was in a very bad shape. Champion with the assistance of a new management team brought the company back from the brink of collapse by engineering a remarkable turnaround in the company's core ADW business.
During his tenure, the company's wager processing through organic growth and acquisition progressed more than seven-fold, to $750 million from $110 million between 2002-06, which resulted in a 45% share of the US ADW market.
In another development, the Board of Directors of the company appointed Gary Sproule as Interim Chief Executive Officer of the online advanced deposit wagering company effective December 11, 2007. Sproule was serving the company since 2002. He was functioning as Chief Operating Officer of the company since July this year. Earlier, he has also served as Chief Financial Officer.
Sproule, as Interim CEO, will concentrate on the company's core online business, which included improving revenue growth and ongoing proposals to make the Youbet.com platform more competent. By giving Sproule the reins of CEO on an interim basis, the company could initiate a search for a new CEO.
Before Sproule's stint with Youbet, he was CFO at Disney Interactive and spent four years as CFO of WhatsHotNow.com and Magnet Interactive Communications. Prior to that, from 1972-97, Sproule worked at UNOCAL, where he rose to become COO for the 76 Products Marketing Division.
However betting on Youbet.com is as risky as betting on horses. According to the Bloodhorse.com Youbet.com was served with a federal search warrant recently. The SEC filed a document October 9, stating that officials from an affiliate agency of the U.S. Department of Homeland Security performed the search warrant at the Youbet.com wagering company's Woodland Hills headquarters. Their stock tanked on the news so here we are at $1 a share. Youbet could always pick up dog racing, maybe that would help the bottom line? Happy Trading.
Article by Ted Gottsegen,
Contributor at TheStockMasters.com
Disclaimer: The Author does not hold any positions or shares in the securities mentioned in this publication.
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