March 24, 2010

Bingo.com Announces Year End & Fourth Quarter Resultsaccrobat_icon

ANGUILLA, B.W.I., March 24, 2010 / Bingo.com, Ltd. (OTC BB: BNGOF), operator of the popular online gaming community http://www.bingo.com, today announced its unaudited financial results for the fourth quarter ended December 31, 2009. All amounts are presented in United States dollars and in accordance with United States Generally Accepted Accounting Principles.

Bingo.com financial highlights for the year ended 2009 and of the fourth quarter of 2009 included:

    • • Total revenue for the year ended December 31, 2009 of $5,825,362, an increase of 3% from revenue of $5,649,565 in the year ended December 31, 2008.
    • • Total gaming revenue for the year ended December 31, 2009, of $5,629,529, an increase of 5% from revenue of $5,373,718 in the year ended December 31, 2008.

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  • • When measured in Pounds Sterling, presently our depositing currency, Total gaming revenue for the year ended December 31, 2009 of £3,635,229, an increase of 25% from gaming revenue of £2,915,893 for the same period in the prior year.
  • • Total loss after tax for the year ended December 31, 2009 of $1,188,051 an increase of 3% compared to a loss of $1,156,787 for the year ended December 31, 2008.
  • • Total revenue for the quarter ended December 31, 2009, was $1,552,320, an increase of 17% from revenue of $1,329,273 for the same period in the prior year and an increase of 8% from revenue of $1,436,296 in the third quarter of 2009.
  • • Total loss for the quarter ended December 31, 2009, was $286,943, an improvement of 26% from a loss of $390,282 for the same period in the prior year and an improvement of 26% from a loss of $390,432 in the third quarter of 2009.

“Last year saw strong player traffic and gaming activity on Bingo.com,” said Tarrnie Williams, the Company’s CEO. “However, we continued to be negatively affected by currency fluctuations, particularly the fall in value of the United Kingdom Pound Sterling relative to the United States Dollar.”

“The cost of operating a full service gaming operation is significant and, to combat this, we have chosen a new strategic direction by partnering with Unibet. This change in strategy will allow Bingo.com to significantly reduce its costs while simultaneously increasing the reach of its product offering through the introduction of multi-currency and multi-language features. We have found that providing bingo in our players’ language and currency increases depositing and play. The Bingo.com URL continues to draw high levels of traffic from many countries around the world and, with the growth of online bingo, we believe we are now well-positioned to become profitable.”

Total revenue for the quarter ended December 31, 2009, was $1,552,320, an increase of 17% from revenue of $1,329,273 for the same period in the prior year and an increase of 8% from revenue of $1,436,296 in the third quarter of 2009. Of the $1,552,320 revenue for the quarter, the gaming operations provided revenue of $1,501,114, an increase of 17% from gaming revenue of $1,287,808 in the fourth quarter of 2008 and an increase of 8% from gaming revenue of $1,383,534 in the third quarter of 2009. The increase compared to the fourth quarter of 2008 and the third quarter of 2009, is due to an increase in the player base. The advertising revenue for the quarter ended December 31, 2009, was $51,206, an increase of 23% from advertising revenue of $41,465 in the fourth quarter of 2008 and a decrease of 3% from advertising revenue of $52,762 in the third quarter of 2009.

Cost of revenue was $1,051,699 during the fourth quarter of 2009, an increase of 15% compared to cost of revenue of $917,916 in the fourth quarter of 2008 and an increase of 9% from cost of revenue of $962,525 during the third quarter of 2009. Cost of 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 increase compared to the fourth quarter of 2008, is due to the increase in costs, especially bandwidth and gaming taxation in relation to our Maltese operation. The increase compared to the third quarter of 2009, is due to an increase in revenue resulting in an increase of deposit bonuses and payment processing fees.

Operating costs before interest, depreciation and amortization expenses, including sales and marketing and general and administrative expenses decreased to $779,273 in the fourth quarter of 2009, a decrease of 4% over operating expenses of $809,977 in the fourth quarter of 2008 and a decrease of 10% over operating costs of $864,959 in the third quarter of 2009. The decrease in operating expenses compared to the fourth quarter of 2008 and the third quarter of 2009 is due to fluctuations in the foreign currency market.

Sales and marketing expenses were $400,485 during the fourth quarter of 2008, an increase of 24% over expenses of $323,905 during the fourth quarter of 2008 and a decrease of 6% over sales and marketing expenses of $427,311 in the third quarter of 2009. These costs include sign up bonuses and incentives, commissions, advertising, and other promotional expenses intended to increase our subscriber base and improve gaming revenue. The increase compared to the fourth quarter of 2008, is primarily due to the increase in marketing expenses, particularly search engine optimisation costs incurred to ensure we continue to hold a top ranking position in all the search engines. The decrease compared to the third quarter of 2009, is due to a decrease in marketing spend by the Company.

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 $398,901 for the fourth quarter of 2009, an increase from general and administrative expenses of $397,035, in the fourth quarter of 2008 and a decrease of 4% from expenses of $416,147 for the third quarter of 2009.

The Companies 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. The net loss after taxation for the three months ended December 31, 2009, amounted to $286,943, a loss of $0.01 per share, compared to a net loss of $390,282 or $0.01 per share in the fourth quarter of 2008 and net loss of $390,432 or $0.01 per share in the third quarter of 2009. The decrease in net loss after taxation for the fourth quarter 2009 compared to the fourth quarter of 2008 and the third quarter of 2009 is due to an increase in revenue and currency fluctuations of the Pound Sterling compared to the US Dollar, our reporting currency.

The Company has made a provision for the progressive jackpots on its slots games and for players float. We had 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. This compares to cash of $412,002 and working capital of $336,316 before the provision for jackpots and players float of $211,821 at December 31, 2008, and cash of $547,505 and working capital of $429,121 before the provision for jackpots and players float of $348,382 at September 30, 2009.

For full details of the Companies 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

Bingo.com, Ltd. (OTC BB: BNGOF) is the parent company of the Bingo.com group of companies which operates the popular online gaming community http://www.bingo.com. The Bingo.com group 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 1,975,000 registered users http://www.bingo.com. is one of the most recognized and most visited bingo entertainment destinations on the Internet.

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, 2009, the Form 10-K/A, filed with the SEC on December 7, 2009, 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.com
  • (264) 461-2646

BINGO.COM, LTD. Unaudited Consolidated Balance Sheets

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BINGO.COM, LTD. Unaudited Consolidated Statements of Operations For the periods ended December 31, 2009 and 2008

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BINGO.COM, LTD. Unaudited Consolidated Statements of Stockholders’ Equity For the year ended December 31, 2009 (Unaudited)

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BINGO.COM, LTD. Unaudited Consolidated Statements of Cash Flows For Year Ended December 31, 2009 and 2008

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