March 22, 2011

Bingo.com Announces Year End & Fourth Quarter Results

ANGUILLA, B.W.I., March 22, 2011 / Bingo.com, Ltd. (OTC BB: BNGOF), owner of the popular online gaming community http://www.bingo.com, today announced its financial results for the fourth quarter and the year ended December 31, 2010. 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 2010 and of the fourth quarter of 2010 included:

  • Total revenue for the year ended December 31, 2010 of $1,816,804, a decrease of 69% from revenue of $5,825,362 in the year ended December 31, 2009.
  • Total gaming revenue for the year ended December 31, 2010, of $1,718,257, a decrease of 69% from revenue of $5,629,529 in the year ended December 31, 2009.
  • Total loss after tax for the year ended December 31, 2010 of $878,972 an improvement of 26% compared to a loss of $1,188,051 for the year ended December 31, 2009.
  • Total revenue for the quarter ended December 31, 2010, was $110,884, a decrease of 93% from revenue of $1,552,320 for the same period in the prior year and an increase of 14% from revenue of $97,509 in the third quarter of 2010.
  • Total loss for the quarter ended December 31, 2010, was $260,682, an improvement of 9% from a loss of $286,943 for the same period in the prior year and a decline of 6% from a loss of $245,507 in the third quarter of 2010.

“2010 was a difficult year of transition for Bingo.com,” said Tarrnie Williams, the Company’s CEO. “During the year, Bingo.com embarked on a new strategic direction by joining the Unibet Partner Program and began a complete restructuring of all resources and business strategy. While the initial impact of the strategy on our revenues has been negative, we believe the decision was the correct one and that positive returns will be realized. During the fourth quarter of 2010 Bingo.com invested in the creation of a new marketing campaign that launched in select markets during the first quarter of 2011. While some of the cost benefits of the restructuring have been recognized in 2010’s results, the expenses anticipated as a result of the transition will not be complete until the end of the second quarter 2011. However as a result of our marketing efforts over the course of the first and second quarters of 2011, we also expect significantly higher revenues.”

Total revenue for the quarter ended December 31, 2010, was $110,884, a decrease of 93% from revenue of $1,552,320 for the same period in the prior year and an increase of 14% from revenue of $97,509 in the third quarter of 2010. Of the $110,884 revenue for the quarter, the gaming operations provided revenue of $93,128, a decrease of 94% from gaming revenue of $1,501,114 in the fourth quarter of 2009 and an increase of 13% from gaming revenue of $82,745 in the third quarter of 2010. During the quarter ended June 30, 2010, Bingo.com migrated its players onto the Unibet partner program. The decrease compared to the fourth quarter of 2009, is due to a decrease in cash game play, especially as a result of a second platform change within six months. The increase in gaming revenue for the fourth quarter of 2010, compared to the third quarter of 2010, is due to an increase in cash game play. Bingo.com earned advertising revenue of $17,756 in the quarter ended December 31, 2010, a decrease of 65% from advertising revenue of $51,206 in the fourth quarter of 2009 and an increase of 20% from advertising revenue of $14,764 in the third quarter of 2010. During the quarter ended March 31, 2010 the Company suspended sales of new advertising.

Operating costs before interest, and depreciation expenses, including sales and marketing and general and administrative expenses decreased to $323,483 in the fourth quarter of 2010, a decrease of 58% over operating expenses of $779,273 in the fourth quarter of 2009 and an increase of 2% over operating costs of $317,386 in the third quarter of 2010. The decrease in operating expenses compared to the fourth quarter of 2009, is due a decrease in sales and marketing expenses, particularly marketing bonuses granted to players, as a result of migrating to the Unibet partner program where significantly lower bonuses are granted to players.

Sales and marketing expenses were $72,791 during the fourth quarter of 2010, a decrease of 82% over expenses of $400,485 during the fourth quarter of 2009 and an increase of 85% over sales and marketing expenses of $39,309 in the third quarter of 2010. Sales and marketing expenses principally include costs for signup bonuses, marketing, prizes for our players and other bonuses and incentives offered to gaming players. The decrease in sales and marketing expenses for the quarter ended December 31, 2010, compared to the fourth quarter of 2009, is primarily due to migration to the Unibet partner program where significantly lower marketing bonus are granted to players. The increase in sales and marketing expenses compared to the third quarter of 2010, is due to the production of advertising material especially for the increased marketing campaigns launched in the first quarter of 2011.

General and Administrative expenses consist of salaries, premises costs for our office, legal and professional fees, and other general corporate and office expenses. General and administrative expenses were $245,175 during the fourth quarter of 2010, a decrease of 39% from general and administrative expenses of $398,901, in the fourth quarter of 2009 and a decrease of 17% from expenses of $295,136 for the third quarter of 2010. The decrease in general and administrative expenses for the quarter ended December 31, 2010, compared to the fourth quarter of 2009 and the third quarter of 2010, is due to migration to the Unibet partner program whereby we have reduced many of our costs, especially the development of the Bingo.com website.

The net loss after taxation for the three months ended December 31, 2010, amounted to $260,682, a loss of $0.00 per share, compared to a net loss of $286,943 or $0.01 per share in the fourth quarter of 2009 and net loss of $245,507 or $0.00 per share in the fourth quarter of 2009. The decrease in net loss for the quarter ended December 30, 2010, compared to the fourth quarter of 2009, is due to the reduction in expenses as a result of migrating to the Unibet partner platform. The increase in net loss after taxation for the fourth quarter 2010 compared to the third quarter of 2010 is due to the production of advertising material especially for the increased marketing campaigns launched in the first quarter of 2011.

We had cash of $1,396,384 and working capital of $1,723,393 at December 31, 2010. This compares to cash of $557,251 and working deficit of $19,801 at December 31, 2009, and cash of $1,935,764 and working capital of $1,975,643 at September 30, 2010.

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 own the popular online 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 1,995,000 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 21, 2011, 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