Las Vegas From Home.com Entertainment Reports Year End 2005, Fourth Quarter 2005 and First Quarter 2006 Results

02 May 2006

VANCOUVER, BRITISH COLUMBIA — (MARKET WIRE) — 05/01/2006 — 79% year-over-year Q1 2006 revenue growth and profitable quarter

Las Vegas From Home.com Entertainment Inc. (the “Company”) or (“LVFH”) (TSX VENTURE:LVH)(OTCBB: LVFHF)(BERLIN:LVH)(FWB:LVH) today announced results from operations for its year ended December 31, 2005, the fourth quarter of Fiscal 2005 and the first quarter period ended March 31, 2006.

All financial figures are in Canadian dollars.

Q1 Fiscal 2006 Financial Results:-

First quarter revenues were $3,741,055 as compared with revenues of $2,085,311 in the same period a year ago, growth of 79% year-over-year and 5% versus the fourth quarter of Fiscal 2005. Revenues grew as a result of increased usage of the Company’s Gaming Software. The Company had net income for the quarter of $315,128 as compared to $364,329 in the first quarter of Fiscal 2005.

“I am pleased to report another quarter of growth and profitability,” stated Jake Kalpakian, President and CEO of Las Vegas. “Despite increased expenditures associated with strengthening our infrastructure by opening another office to assist in software development and bolstering our workforce to 86 full-time employees from 60 during the corresponding period in 2005, the continuation of our financial commitment to the Heartland Poker Tour in the US (“HPT”) and incurring a loss of $234,106 in revenues due to the weakening of the US dollar, the Company posted a net profit of $315,128.”

Mr. Kalpakian continues, “More importantly, the daily rake revenue generated by the licensing and operation of our software (excluding one time up-front licensing fees and administration fees), perhaps the most important operating barometer, continued to grow to an average of US $34,591 per day.”

Q4 Fiscal 2005 Financial Results:-

Fourth quarter revenues were $3,561,718 as compared with revenues of $1,073,518 in the same period a year ago, growth of 231% year over year. Revenues grew as a result of increased usage of the Company’s Gaming Software. The Company incurred a net loss for the quarter of $177,218 as compared to a net loss of $3,461,006 in the corresponding period of 2004.

Commenting on the Q4 results, Mr. Kalpakian states, “The fourth quarter was unfairly impacted by some non-operating expenses. In fact, the core business performed well showing continued growth.”

A combination of promotional expense of $209,438 actually incurred over the previous three quarters but recognized in Q4, as well as a year end write down of marketable securities of $167,927 all impacted the Company’s fourth quarter results. Furthermore, the Company’s funding of start up production costs in relation to its exclusive sponsorship of the Heartland Poker Tour (“HPT”) of $270,200 was also recognized in Q4. Had it not been for the three aforementioned expenses, the Company would have made a profit of about $470,000.

Mr. Kalpakian added, “While the expense of funding the production costs of HPT affected the bottom line, the growth of the televised tournament is well worth the price when compared to its potential future value. The show originated in October, 2005, reaching a potential 9 million viewers over 5 stations in the U.S. Midwest and has now grown to a potential audience of 35 million over 13 stations and growing. This is the type of expenditure that the Company will make from time to time to assist both growth and brand equity recognition.”

Fiscal year end 2005 Financial Results:-

Annual revenues were $11,721,318 as compared with revenues of $1,983,964 in the same period a year ago, growth of 490% year over year. Revenues grew as a result of increased usage of the Company’s Gaming Software. Net income for the year ended was $1,088,741 as compared to a net loss of $5,346,512 in the corresponding period of 2004. Total Assets were $12,819,608 as compared to $2,582,847 in the same period a year ago, growth of 396% year over year.

2006 Outlook

Industry indications and trends remain buoyant as the sector continues to enjoy solid results. Despite the strong results, the industry is starting to consolidate.

For any company to remain competitive in the industry, it must either offer a full choice of verticals to the gaming customer or carve either a dominant or niche space in the marketplace. The large number of online gaming sites and the increasingly higher barriers to profitable scale mean that consolidation will be seen by many operators as an attractive exit going forward.

The Company’s core business of licensing and operating poker software continues to show momentum. In 2006, the Company expects to achieve revenues between $16 to $20 million alone from its current poker-concentrated software offering. A new stream of revenues is also expected to be generated with the launching of a separate Asian Software platform.

The Company’s two main brands, www.tigergaming.com and www.actionpoker.com should see continued growth as both brands are preparing to launch highly visible marketing campaigns related to this year’s World Series of Poker later this summer.

The Company is in the process of establishing an office in Costa Rica which is expected to generate further licensing and other business opportunities.

As stated above, additional revenues are expected to be generated with the launching of the Company’s new Asian Software platform which is scheduled to be released in Q2 2006. This Asian initiative will not only lessen the Company’s dependence on its current business derived from one specific region, it could possibly fuel strong growth by introducing “Early or First to Market” software of already recognized and popular games in that market not yet found on the internet.

While it is pre-mature to estimate what revenue the new Asian Software platform will generate, the Company is hopeful the combination of its unique software, early or first mover advantage coupled with promising relationships will generate positive results.

The Company has made geographical diversification of both its customers and products, such as the Asian Software platform, as one of its primary objectives in 2006. In fact, plans are underway to follow this initiative of customer and product diversification to other targeted regions.

With the Company having a solid balance sheet, expanded operational infrastructure, growing demand for its core product, an innovative product pipeline and the soon to be released Asian Software platform, the Company is well positioned for continued growth.

LVFH’s financial statements for the year-ended December 31, 2005, and for the first quarter ended March 31, 2006, are available on SEDAR at www.sedar.com.

——————————————————————–

LAS VEGAS FROM HOME.COM ENTERTAINMENT INC.
CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Expressed in Canadian dollars)

THREE MONTH PERIOD ENDED MARCH 31, 2006
——————————————————————–
(Unaudited – Prepared by Management)

(These interim financial statements have not been reviewed by the
Company’s Auditor)

LAS VEGAS FROM HOME.COM ENTERTAINMENT INC.
Consolidated Balance Sheets
March 31, 2006 and December 31, 2005
(Canadian Dollars)
(Unaudited – Prepared by Management)
——————————————————————–

March 31 December 31
2006 2005
———— ———–
(unaudited) (audited)
ASSETS
Current
Cash & term deposit $ 9,885,486 $ 8,408,620
Marketable securities 89,193 379,236
Accounts receivable (note 6) 1,391,676 1,801,274
Due from related parties (note 11(c)) – 4,740
Prepaids & security deposits 42,930 27,499
———— ———–
11,409,285 10,621,369
Equipment & Software Development (note 8) 2,197,214 2,198,239
———— ———–

$ 13,606,499 $12,819,608
———— ———–
———— ———–

LIABILITIES
Current
Customer deposits, accounts payable &
accrued liabilities (note 7) $ 2,336,018 $ 2,111,066
Due to related parties (note 11(b)) 98,995 60,929
Obligation under capital lease (note 9) 17,078 20,268
———— ———–
2,452,091 2,192,263

Obligation under capital lease – 2,550
———— ———–

2,452,091 2,194,813
———— ———–
———— ———–

SHAREHOLDERS’ EQUITY (DEFICIENCY)

Capital stock (note 10(b)) 27,236,550 27,096,835
Contributed Surplus (note 10(e)) 2,381,124 2,306,354
Deficit (18,463,266) (18,778,394)
———— ———–

11,154,408 10,624,795

Total Liabilities & Stockholders’ Equity $ 13,606,499 $12,819,608
———— ———–
———— ———–

Commitments and Subsequent Events (notes 13 & 14)

On behalf of the Board,

Bedo H. Kalpakian Neil Spellman
—————– ————-

LAS VEGAS FROM HOME.COM ENTERTAINMENT INC.
Consolidated Statements of Operations and Deficit
Three Months Ended March 31
(Canadian Dollars)
(Unaudited – Prepared by Management)
——————————————————————–

March 31 March 31
2006 2005
———— ————

Revenue $ 3,678,721 $ 2,084,056
Interest 62,334 1,255
———— ————
$ 3,741,055 $ 2,085,311
———— ————

Expenses
Advertising and promotion 1,542,017 746,969
Consulting and professional fees 74,754 90,127
Amortization 142,608 65,336
Donation 1,000 10,000
Bank charges, interest and foreign
exchange 6,029 2,373
Legal, accounting and audit 46,327 33,749
Management fees 90,000 45,000
Office 125,659 44,816
Regulatory and transfer agent fees 1,470 2,098
Rent 136,991 78,625
Salaries and benefits 829,032 334,252
Shareholder communication – 250
Commission fees 12,700 -

Transaction fees 275,173 176,288
Telephone 17,310 9,377
Travel, meals and entertainment 83,730 81,722
———— ————
$ 3,384,800 $ 1,720,982
———— ————

Gain (loss) before other items 356,255 364,329
———— ————

Other items
Write down of securities 41,127 -
———— ————
41,127 -
———— ————
Net gain (loss) for period $ 315,128 $ 364,329
———— ————

Deficit, beginning of period (18,778,394) (19,867,135)
———— ————

Deficit, end of period $(18,463,266) $(19,502,806)
———— ————
———— ————

Weighted average number of shares 93,114,908 77,406,344
———— ————

Net and fully diluted gain (loss) per
common share $ 0.003 $ 0.005
———— ————
———— ————

LAS VEGAS FROM HOME.COM ENTERTAINMENT INC.
Consolidated Statements of Cash Flows
Three Months Ended March 31
(Canadian Dollars)
(Unaudited – Prepared by Management)
——————————————————————–

March 31 March 31
2006 2005
———— ————

Cash provided by (used for)

Operations
Net gain (loss) $ 315,128 $ 364,329

Items not affecting cash

Amortization 142,608 65,336
Capitalization of deferred amortization
on software development – 3,940
Write down of securities 41,127 -
Foreign exchange – (7,377)
Stock based compensation 74,770 -
———— ————

Operating Cash Flow 573,633 426,228
———— ————

Changes in non-cash working capital:
Accounts receivable 409,598 (295,817)
Prepaids and security deposits (15,431) 87,629
Due from related party 4,740 (126,817)
Accounts payable and accrued liabilities 224,952 (80,503)
Due to related parties 38,066 2,969
———— ————
661,925 (412,539)
———— ————
1,235,558 13,689
———— ————

Cash provided by Financing Activities
Common shares issued, net of issue costs 139,715 902,720
Other obligations (loans payable) – (305,658)
Capital Subscriptions – 450,000
Repayment of capital lease (5,740) (4,695)

———— ————
133,975 1,042,367
———— ————

Investing
Equipment (10,607) (23,967)
Proceeds on sale of marketable
securities 248,916 -
Additions to software development (130,976) (235,121)
———— ————
107,333 (259,088)
———— ————

Outflow of Cash
Increase in cash and cash equivalents 1,476,866 796,968

Cash and cash equivalents, beginning of
period 8,408,620 (20,717)

———— ————

Cash and cash equivalents, end of period $ 9,885,486 $ 776,251

About Las Vegas From Home.Com Entertainment Inc.

LVFH is an “E-Gaming” Software Developer and provider, and through its wholly owned Antiguan Subsidiary, Action Poker Gaming Inc., licenses its software to third parties.

On behalf of the Board of Las Vegas From Home.com Entertainment Inc.

Jacob H. Kalpakian, President

This release does not constitute an offer for sale of securities in the United States.

Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement in this release containing words such as “believes”, “plans”, “expects” or “intends” and other statements that are not historical facts are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contacts:
Las Vegas From Home.com Entertainment Inc.
Jacob H. Kalpakian
President
(604) 681-0204
www.lvfh.com

SOURCE: Las Vegas From Home.com Entertainment Inc.

Related News

  • 01 July 2006

    Internet Gambling Legislation Costly and Un-American

    Counterpoint: Bill is costly to taxpayers — and un-American TCPalm By MICHAEL BOLCEREK guest columnist June 27, 2006 Congressional Republicans in Washington remain obsessed with banning Internet poker, and a prohibition bill will hit the House floor within days. Unfortunately, Florida’s own Rep. Dave Weldon is on the record favoring a ban. The Internet Gambling Prohibition Act (HR 4777), sponsored by Rep. Bob Goodlatte, R-Va., and co-sponsored by Rep.

    Read full article
  • 02 July 2006

    BODOG'S THIRD ANNUAL MARKETING CONFERENCE WILL BE 'MAGIC'

    The third annual Bodog.com Marketing Conference will be held July 23 – 25 at the Wynn Las Vegas Resort and this year the focus is on the tools necessary to “ignite your Online Gaming Business”. Geared to advertisers, affiliates, investors and suppliers of online gaming, this years keynote speaker is Earvin “Majic” Johnson. Joining “Majic” is a most distinguished panel of experts who are all leaders in their field.

    Read full article
  • 10 September 2006

    Peter Dicks’s US Arrest Causing Panic at Online Gaming Firms

    TIMES ONLINE The Sunday Times – Business September 10, 2006 Focus: Busted! Peter Dicks’s US arrest is causing panic at online gaming firms, write Dominic Rushe in New York and Louise Armitstead When the New York Giants take on the Indianapolis Colts today, at least $10 of dodgy money will be riding on the game. The bet was made with the London-listed gaming firm Sportingbet.com by Dominic Rushe, our US-based reporter, using his American bank account.

    Read full article