Las Vegas From Home.com Entertainment Inc.
TSX VENTURE : LVH
OTC Bulletin Board : LVFHF
BERLIN : LVH

Las Vegas From Home.com Entertainment Inc.

November 17, 2005 16:00 ET

Las Vegas From Home.com Entertainment Inc. Delivers Third Consecutive Profitable Quarter

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 17, 2005) -

Total Revenues for the Three Month Period ended September 30, 2005 up by 866% over the same period in 2004.

Las Vegas From Home.com Entertainment Inc. (the "Company" or "Las Vegas" or "LVFH") (TSX VENTURE:LVH)(OTCBB:LVFHF)(FWB:LVH) is pleased to announce its unaudited financial results for the three and nine month periods ended September 30, 2005.

All financial figures are in Canadian dollars.

- Q3 2005 total revenues are up by 866% over the same period last year

- Q3 2005 total revenues are up by 26% over Q2 2005 with continuing momentum and growth carrying over into Q4 2005

- Q3 2005 profit (before other items) was up by 78.8% over Q2 2005

- Q3 2005 profit margins (revenues less operating expenses) increased to 15.2% as compared to 10.7% during Q2 2005

"I am pleased to report another quarter of growth and profitability," stated Jake Kalpakian, President and CEO of Las Vegas. "We were able to meet our financial objectives of growing our business at a healthy rate while still keeping an eye on the bottom line. Despite increased expenditures associated with strengthening our infrastructure and bolstering our workforce, as well as incurring a foreign exchange loss of $136,162 due to the weakening of the US dollar, the Company posted a net profit of $515,857."



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Financial Highlights Three months ended Nine months ended
(in Cdn Dollars $) September 30 September 30
2005 2004 2005 2004
--------------------------------------------------------------------
Total Revenues $ 3,389,665 $ 350,688 $ 8,159,600 $ 910,446
--------------------------------------------------------------------
Profit (before
other items) $ 515,857 $ (530,878) $ 1,168,577 $(1,418,765)
--------------------------------------------------------------------
Net profit/(loss)
for period $ 515,857 $ (558,394) $ 1,265,959 $(1,885,506)
--------------------------------------------------------------------
Weighted average
gain/(loss) per
common share $ 0.006 $ (0.01) $ 0.015 $ (0.03)
--------------------------------------------------------------------

--------------------------------------------------------------------


Highlights include:

- Total revenues for the three month Quarterly period ended September 30, 2005 up by 866% over the same period in 2004, from $350,688 to $3,389,665 and earnings of $515,857 or $0.006 per share (weighted average) as compared to a loss of $(558,394) or $(0.01) per share (weighted average)

- Quarterly total revenues up by 26% over Q2 2005 from $2,684,624 to $3,389,665

- Third consecutive profitable quarter

- Total assets of $12,323,016 for the nine month period ended September 30, 2005 as compared to $664,728 in the same period of 2004

- Established a fully functional office staffed with 31 employees in Cyprus focused on operations management, customer service and marketing

- Expanded the Company's Licensee base

Three month period ended September 30, 2005 Financial Results vs. the three month period ended September 30, 2004 (Total Revenues up by 866%)

During the three month period ended September 30, 2005, the Company had a profit (before other items) of $515,857 or $0.006 per share as compared to a loss of $530,878 or $(0.01) per share, and a net profit of $515,857 or $0.006 per share as compared to a net loss of $(558,394) or $(0.01) per share in the same three month period of 2004. Total revenues have significantly increased to $3,389,665 as compared to $350,688 for the corresponding period in 2004 mainly due to a substantial increase in revenue generated from the Company's Gaming Software in the amount of $3,328,733 as compared to $349,445 for the corresponding period in 2004. Operating costs have increased to $2,873,808 as compared to $881,566 for the same period in 2004 reflecting an increase in the level of the Company's activities.

Three month period ended September 30, 2005 Financial Results vs. three month period ended June 30, 2005; Total Revenues up by 26%, Profit (before other items) up by 78.8%, and profit margins (revenues less operating expenses) increased from 10.7% to 15.2%

For the three month period ended September 30, 2005, (the "Third Quarter"), the Company recorded total revenues of $3,389,665 as compared to $2,684,624 for the period ended June 30, 2005 (the "Second Quarter"), reflecting a general acceptance of the Company's Gaming Software by the Company's Licensees and users of the Company's Gaming Software. Interest income was $60,932 during the Third Quarter as compared to $8,470 during the Second Quarter, reflecting an increase in cash balances in the bank. Operating expenses increased from $2,396,233 in the Second Quarter to $2,873,808 in the Third Quarter. The increase in the operating expenses during the Third Quarter from the immediately preceding Second Quarter reflects an increase in the level of the Company's activities.

The profit (before other items) was $515,857 during the Third Quarter as compared to a profit (before other items) of $288,391 for the Second Quarter.

The Net Profit during the Third Quarter was $515,857 as compared to a Net Profit of $385,773 during the Second Quarter.

The weighted average number of shares during the Third Quarter was 83,273,344 as compared to 77,925,844 during the Second Quarter. The weighted average profit per common share was $0.006 during the Third Quarter as compared to $0.005 during the Second Quarter.

Nine month period ended September 30, 2005 vs. Nine month period ended September 30, 2004 (Total Revenues up by 796%)

For the nine month period ended September 30, 2005, the Company recorded revenue of $8,088,943 as compared to $907,455 for the same period in 2004, reflecting a general acceptance of the Company's Gaming Software by the Company's Licensees and users of the Company's Gaming Software. Interest income was $70,657 as compared to $2,991 during the same period in 2004, reflecting an increase in cash balances in the bank. The profit (before other items) was $1,168,577 compared to a loss of $(1,418,765) for the same period in 2004 even though the total expenses of the Company increased to $6,991,023 reflecting an increase in the level of the Company's activities as compared to $2,329,211 for the same period in 2004. For the nine month period ended September 30, 2005, the Company recognized the sum of $252,478 as stock based compensation expense.

For the nine month period ended September 30, 2005 the Company had a net profit of $1,265,959 or $0.0015 per common share (weighted average) as compared to a loss of $(1,885,506) or $(0.03) per common share (weighted average) for the same period in 2004.

Outlook

Industry indications and trends for the sector remain strong as the sector is continuing to enjoy solid results.

The Company is continuing to experience solid growth in Q4 and expects this positive momentum to carry well into 2006. Management believes fourth quarter revenues should range between $3.6 and $4 million.

The Company's two main brands, www.tigergaming.com ("Tiger") and www.actionpoker.com ("Action") are preparing to launch more visible marketing campaigns/promotions. Tiger is continuing to enjoy good brand recognition and customer loyalty in Canada and is set to launch a series of marketing initiatives that should further solidify its position as a favourite on-line poker room in the Country. Action is following suit in the U.S. and abroad and has entered into several relationships which include land based casinos and T.V. advertising, the benefits of which should start to be realized going forward.

The Company's central poker network known as the Action Poker Network ("APN") has also enjoyed increased acceptance and this is evident from the increased revenues generated from its existing third party licensees as well as attracting a higher caliber of prospective Casino and Sportsbook operators interested in licensing the Company's software. The Company was successful in launching two well-known Sportsbook operators in Q3 who are starting to generate encouraging results and which are expected to increase in time.

Furthermore, with its larger software development team, the Company has initiated plans to build additional multi-player games to offer to all existing customers in the APN as well as attracting new players as a result of the popularity of the newly developed games. Moreover, the new multi-player games under development are already attracting a broader range of licensing opportunities.

Aside from licensing its software, the Company believes that its own operator model operating from licensed jurisdictions gives it a competitive advantage over other poker software providers. The Company believes this will be demonstrated with improving profit margins in fiscal 2006.

The Company intends to fully take advantage of its sizable player database by expanding its casino operations as well as entering other new gaming verticals in the near future as an operator.

With the Company having a solid balance sheet, expanded operational infrastructure, growing visibility, demand for its core product, a growing product pipeline and the launching into other new gaming verticals as an operator, Management of the Company believes the Company is well positioned to become a leading recognized brand name in the industry while at the same time delivering solid financial results.

2005 Third Quarter Analyst call

A conference call is scheduled for 5:00 pm (Eastern: Toronto Time) or 2:00 pm (Pacific: Vancouver Time) on Thursday, November 17, 2005. Interested parties should call.



Conference Call:

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Date: Thursday, November 17, 2005
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Time: 5:00 pm (Toronto time)
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Local/Intl dial in number: +1 (416) 642-5212
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Toll Free - North America: 1 (866) 321-6651
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To participate in the call, please dial (416) 642-5212 or 1 (866) 321-6651 five to ten minutes prior to the 5:00 pm start of the teleconference call. This conference call will be recorded and made available for replay on November 18, 2005 at noon (Toronto time) after the completion of the call, up until midnight November 24th, 2005. To listen to the replay, please dial (402) 220-7731 or 1 (800) 766-0969, and enter pass code 1749560. In addition and after November 22, 2005, you may access the audio recording by visiting www.lvfh.com and clicking on Investor Information.

LVFH Forward-Looking Statement Disclaimer

Statements in this press release which are not historical are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, risks associated with the Company's financial condition and prospects, legal risks associated with Internet gaming and risks of governmental legislation and regulation, risks associated with market acceptance and technological changes, risks associated with dependence on licensees, risks relating to international operations, risks associated with competition and other risks detailed in the Company's filing with securities regulatory authorities. These risks may cause results to differ materially from those projected in the forward-looking statements.



LAS VEGAS FROM HOME.COM ENTERTAINMENT INC.
Consolidated Interim Financial Statements
for the Nine Month Period ended September 30, 2005
(unaudited - Prepared by Management)

These interim financial statements have not been reviewed
by the Company's Auditor.

All financial figures are expressed in Canadian dollars.

----------------------------------------
Consolidated Balance Sheets
September 30, 2005 and December 31, 2004
(Canadian Dollars)
(Unaudited - Prepared by Management)
----------------------------------------

September 30 December 31
2005 2004
------------ -----------
(unaudited) (audited)
ASSETS
Current
Cash & term deposits $ 8,766,516 $ -
Marketable securities 383 383
Accounts receivable 1,430,185 1,203,471
Prepaids & security deposits 10,794 102,899
------------ -----------
10,207,878 1,306,753

Due from related
parties (note 9(c)) 2,441 371,347
Investments 146,780 -
Equipment & Software
Development (note 5) 1,965,917 904,747
------------ -----------

Total Assets $ 12,323,016 $ 2,582,847
------------ -----------
------------ -----------

LIABILITIES
Current
Bank indebtedness $ - $ 20,717
Accounts payable & accrued
liabilities 1,512,818 1,361,239
Due to related parties (note 9(b)) 44,282 8,525
Other obligations (note 6) - 516,008
Obligation under capital
lease (note 7) 19,904 19,904
------------ -----------
1,577,004 1,926,393

Obligation under capital
lease (note 7) 8,371 23,190
------------ -----------

1,585,375 1,949,583
------------ -----------
------------ -----------

SHAREHOLDERS' EQUITY (DEFICIENCY)

Capital stock (note 8(b)) 26,635,040 17,299,101
Subscription received - 750,000
Contributed Surplus (note 8(e)) 2,703,777 2,451,298
Deficit (18,601,176) (19,867,135)
------------ -----------

10,737,641 633,264
------------ -----------

Total Liabilities &
Stockholders' Equity $ 12,323,016 $ 2,582,847
------------ -----------
------------ -----------


LAS VEGAS FROM HOME.COM ENTERTAINMENT INC.
-------------------------------------------------
Consolidated Statements of Operations and Deficit
Three and Nine Month Periods ended September 30
(Canadian Dollars)
(Unaudited - Prepared by Management)
--------------------------------------------------------------------

Three Months ended Nine Months ended
September 30 September 30
2005 2004 2005 2004
----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited) (unaudited)

Revenues $ 3,328,733 $ 349,445 $ 8,088,943 $ 907,455
Interest 60,932 1,243 70,657 2,991
----------- ----------- ----------- -----------
3,389,665 350,688 8,159,600 910,446
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Expenses
Advertising and
promotion 1,301,083 245,620 3,054,859 464,131
Amortization 114,802 30,166 252,999 79,958
Bank, interest and
foreign exchange
charges 168,666 (630) 171,792 8,920
Commission fees 3,905 - 28,615 -
Consulting and
professional fees 82,619 48,693 317,855 146,943
Donations 25,000 - 50,000 -
Legal, accounting
and audit 50,175 11,793 113,836 22,964
License fees 12,091 - 28,643 -
Management fees 90,000 45,000 180,000 135,000
Office 103,115 20,547 256,255 85,219
Net revenue sharing - (3,676) - 83,601
Regulatory and transfer
agent fees 10,305 1,889 35,814 8,516
Rent 91,153 65,738 267,607 177,310
Salaries and benefits 523,014 324,427 1,326,355 942,745
Shareholder
communication 4,509 527 15,142 5,624
Technical consulting - - - 2,600
Telephone 13,029 8,460 39,342 (9,296)
Transaction fees 228,284 29,311 610,396 49,533
Travel, meals and
entertainment 52,058 53,701 241,513 125,443
----------- ----------- ----------- -----------
2,873,808 881,566 6,991,023 2,329,211
----------- ----------- ----------- -----------
Gain/(loss) before
other items 515,857 (530,878) 1,168,577 (1,418,765)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------

Other items
Purchase and Termination
of net revenue
sharing Agreement - - - (381,501)
Write down of marketable
securities - (27,516) - (81,440)
Gain on settlement
of debt - - 97,382 -
Write off demand loan - - - (3,800)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
- (27,516) 97,382 466,741
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Net gain/(loss)
for period 515,857 (558,394) 1,265,959 (1,885,506)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Deficit, beginning
of period (19,117,033)(15,550,660)(19,867,135)(14,223,548)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Deficit, end
of period (18,601,176)(16,109,054)(18,601,176)(16,109,054)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Weighted average
number of shares 83,273,344 55,960,996 83,273,344 55,960,996
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Weighted average
gain/(loss) per
common share 0.006 (0.01) 0.015 (0.03)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------


LAS VEGAS FROM HOME.COM ENTERTAINMENT INC.
-----------------------------------------
Consolidated Statements of Cash Flows
Three and Nine Month Periods ended September 30
(Canadian Dollars)
(Unaudited - Prepared by Management)
--------------------------------------------------------------------

Three Months ended Nine Months ended
September 30 September 30
2005 2004 2005 2004
----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited) (unaudited)

Cash provided by
(used for)

Operations
Net gain/(loss) $ 515,857 $ (558,394) $ 1,265,959 $ (1,885,506)
Items not
affecting cash
Amortization 114,802 30,166 252,999 79,958
Capitalization of
deferred
amortization - - 7,677 -
Stock-based
compensation 102,444 - 252,478 -
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
733,103 (528,228) 1,779,113 (1,805,548)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------

Changes in non-cash
working capital:
Receivables (210,616) (35,719) (226,714) (72,747)
Prepaids 5,208 10,378 92,105 79,017
Receivable from
related party 630,800 68,583 371,347 104,401
Payables and
accruals (28,837) 95,006 151,579 411,337
Payable to
related parties 41,841 60,413 33,316 66,093
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
438,396 198,661 421,633 588,101
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
1,171,499 (329,567) 2,200,746 (1,217,447)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------

Financing
Issuance of common
shares for cash 6,794,940 35,715 8,585,940 1,403,917
Capital
subscriptions (1,133,470) - - -
Repayment of
capital lease (5,189) (4,253) (14,819) (10,377)
Other obligations - - (516,008) -
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
5,656,281 31,462 8,055,113 1,393,540
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------

Investing
Equipment (33,013) (30,538) (598,940) -
Marketable
securities (146,780) 93,357 (146,780) (143,111)
Additions to software
development (252,549) - (722,906) -
Loss on dissolving
of subsidiaries - - - 32,127
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
(432,342) 62,819 (1,468,626) (110,984)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------

Increase in cash
and cash
equivalents 6,395,438 (235,286) 8,787,233 65,109

Cash and cash
equivalents,
beginning of
period 2,371,078 300,395 (20,717) -
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------

Cash and cash
equivalents, end
of period 8,766,516 65,109 8,766,516 65,109
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------


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., ("Action"), licenses its software to third parties.

LVFH is a reporting issuer in the Provinces of British Columbia and Alberta and files all public documents on www.sedar.com. The Company is a foreign private issuer in the United States of America and in this respect, files on EDGAR, its annual report on Form 20-F and other reports on Form 6K.

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

Jacob H. Kalpakian, President

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.

Contact Information

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