May 14, 2010

Bingo.com Announces First Quarter Resultsaccrobat_icon

ANGUILLA, B.W.I., May 14, 2010 / Bingo.com, Ltd. (OTC BB: BNGOF), owner of the popular online gaming community http://www.bingo.com, today announced its preliminary unaudited financial results for the first quarter ended March 31, 2010. All amounts are presented in United States dollars and in accordance with United States Generally Accepted Accounting Principles.

“Bingo.com was in a period of transition during the first quarter of 2010,” said Tarrnie Williams, the Company’s CEO. “Early in the quarter, Bingo.com changed to a new software system. While the transition to the system was smooth, the results were not positive enough to warrant a significant marketing investment in the competitive UK market. As we recognized a change in strategy was necessary, we began talks regarding a partnership with Unibet. During the quarter we signed on to the Unibet partner program. However, the technology required development and we were not able to go live until just this week, almost half way through the second quarter. The traffic to Bingo.com is strong and new player acquisitions are occurring from dozens of countries worldwide as we now support 23 languages on the Unibet platform. Now that our desired business strategy is in place, we believe it is only a matter of time before profitability will be achieved.”

Recent Bingo.com highlights included:

  • Signed partnership agreement with Unibet to participate in their network bingo and casino program.
  • Secured $2,250,000.00 investment from Unibet for 25.9% of Bingo.com
  • First quarter gaming revenue of £773,974 (US$1,254,792), a decrease of 13% from gaming revenue of £894,738 (US$1,324,630) for the first quarter of the prior year and a decrease of 17% from gaming revenue of £930,939 (US$1,552,320) in the fourth quarter of 2009 when measured in Pounds Sterling, our depositing currency.
  • Net loss of $344,806 in the first quarter of 2010

The Company’s revenues are primarily received in Pounds Sterling whereas the majority of its fixed expenses are in both Canadian and United States Dollars. The large swings in the exchange rates of these currencies have negatively affected our operations.

Total revenue decreased to $1,254,792 for the quarter ended March 31, 2010, a decrease of 5% from revenue of $1,324,630 for first quarter of 2009 and a decrease of 19% from revenue of $1,552,320 in the fourth quarter of 2009. Gaming Revenue decreased to $1,209,269, a decreased of 6% in the quarter ended March 31, 2010, compared Gaming Revenue of $1,284,732 in the first quarter of 2009 and a 19% decrease from revenue of $1,501,114 in the fourth quarter of 2009. When measured in Pounds Sterling, presently our depositing currency, the gaming operations provided revenue of £773,974, a decrease of 13% from gaming revenue of £894,738 for the first quarter of the prior year and a decrease of 17% from gaming revenue of £930,939 in the fourth quarter of 2009. During the quarter ended March 31, 2010, the Company changed its software platform. The decrease compared to the first and fourth quarter of 2009, is due to a decrease in cash game play, particularly cash slots play in the new gaming platform. We earned advertising revenue of $45,523 in the quarter ended March 31, 2010, an increase from advertising revenue of $39,898 in the first quarter of 2009 and a decrease from advertising revenue of $51,206 in the fourth quarter of 2009. During the quarter ended March 31, 2010 the Company suspended sales of new advertising.

Cost of producing revenue decreased to $857,402 during the quarter ended March 31, 2010, a decrease of 1% compared to costs of $870,349 for the first quarter of 2009 and a decrease of 18% over costs of $1,051,699 in the fourth quarter of 2009. Cost of producing revenue consists of bonuses granted on deposits made by players, the cost of hosting the website, payment processing fees in relation to deposits from and withdrawals to our players, software license fees, and the domain name purchase payments. The decrease in cost of producing revenue for the quarter ended March 31, 2010, compared to the first and fourth quarter of 2009, is due to changes implemented with the new software platform and thus lower cash bonus granted to players.

Operating costs before interest, depreciation and amortization expenses, including sales and marketing and general and administrative expenses increased to $719,373 in the first quarter of 2010, an increase of 1% over operating expenses of $712,288 in the first quarter of 2009 and a decrease of 8% over operating costs of $779,273 in the fourth quarter of 2009. The increase in operating expenses compared to the first quarter of 2009 and the decrease in operating expenses compared to fourth quarter of 2009 is due to fluctuations in the foreign currency market.

Sales and marketing expenses decreased to $314,087 during the first quarter of 2010, a decrease of 6% over sales and marketing expenses of $334,245 in the first quarter of 2009 and a decrease of 22% over expenses of $400,485 during the fourth quarter of 2009. These costs include sign up bonuses and incentives, affiliate commissions, advertising, and other promotional expenses intended to increase our subscriber base and improve gaming revenue. The decrease in sales and marketing expenses for the quarter ended March 31, 2010, compared to the first and fourth quarter of 2009 is due to changes implemented with the new software platform and thus lower marketing bonus granted to players.

General and Administrative expenses consist of salaries, premises costs for our office, legal and professional fees, and other general corporate and office expenses. These expenses were $408,100 for the first quarter of 2010, an increase of 12% from general and administrative expenses of $366,132, in the first quarter of 2009 and an increase of 2% from expenses of $398,901 for the fourth quarter of 2009. The increase compared to the first and fourth quarters of 2009, is due to the strengthening of the Canadian Dollar in relation to the US dollar. In addition, the increase compared to the first quarter of the prior year is due to an increase in operational expenses in relation to operations in Malta.

Net loss for the quarter ended March 31, 2010, amounted to $344,806, or $0.01 per share, an increase of 41% compared to a net loss of $243,974 or $0.01 in the first quarter of the prior year and an increase of 20% compared to a net loss of $286,943 or $0.01 per share for the fourth quarter of 2009. The increase in net loss for the quarter ended March 31, 2010, compared to the first and fourth quarter of 2009, is due to increased expenses as a result of the strengthening of the Canadian Dollar in relation to the US Dollar, and the decrease in revenue as a result of the change in software platforms.

The Company has made a provision for the progressive jackpots on its slots games and for players float. We had cash of $297,662 and working capital of $59,769 before the provision for jackpots and players float of $376,517 at March 31, 2010. This compares to cash of $557,251 and working capital of $382,696 before the provision for jackpots and players float of $402,496 at December 31, 2009. The Company has approximately $2,328,000 in cash as at May 14, 2010.

For full details of the Company’s operations and financial results, please refer to the Securities and Exchange Commission website at www.sec.gov or the Bingo.com website at http://www.bingo.com.

About Bingo.com

gaming community http://www.bingo.com. The Bingo.com website offers multiplayer bingo, slot machines, sweepstakes, and more. Players come together from around the world to chat, share, play and win at Bingo.com. With over 1,990,000 registered users http://www.bingo.com is one of the most recognized and most visited bingo entertainment destinations on the Internet. Bingo.com operates its multi-language and multi-currency bingo and casino system as part of the Unibet partner program (http://www.poweredbyunibet.com).

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by the company) contains statements that are forward-looking, such as statements relating to anticipated future success of the company. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the company. For a description of additional risks and uncertainties, please refer to the company’s filings with the Securities and Exchange Commission. Specifically, readers should read the Company’s Annual Report on Form 10-K, filed with the SEC on March 31, 2010, and the prospectus filed under Rule 424(b) of the Securities Act on March 9, 2005 and the SB2 filed July 17, 2007, for a more thorough discussion of the Company’s financial position and results of operations, together with a detailed discussion of the risk factors involved in an investment in Bingo.com, Ltd.

For more information contact:

  • Henry Bromley
  • CFO
  • ir@bingo.comThis e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • (264) 461-2646