Online wager firm Youbet.com Inc. will cut $5 million from its budget following a poor second quarter from two subsidiaries. The Woodland Hills-based company will make across the board cuts in payroll, operating expenses and marketing for the second half of the year. The cuts affect the corporate headquarters and all the company’s operating units. The announcement of the budget cuts follows a second quarter in which subsidiaries United Tote had lower than expected revenues and International Racing Group took in a handle that decreased by $33.6 million when compared with the same period in 2006. Youbet said the results of the second quarter will be in the range of a loss of $0.01 to $0.00. “The cost reductions are designed to create greater efficiency in our account acquisition and retention with the intent of providing greater earnings leverage in our company going forward,” said Youbet CEO Charles F. Champion.
$5 Million in Cuts at Youbet.com Inc.