May 12, 2011
ANGUILLA, B.W.I., May 12, 2011 / 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, 2011. All amounts are presented in United States dollars and in accordance with United States Generally Accepted Accounting Principles.
Recent Bingo.com highlights included:
- First quarter revenue of $247,044, an increase of 123% from revenue of $110,884 in the fourth quarter of 2010.
- A 95% increase in total monthly active customers in the first quarter of 2011 from the fourth quarter of 2010.
- Completed cost reduction restructuring program of the Bingo.com organization • Launch of television marketing campaign: http://www.youtube.com/watch?v=yDDXHmerMz8
“The first quarter of 2011 marks two milestones with the launch of our new marketing initiatives and the completion of our restructuring efforts,” said Tarrnie Williams, Bingo.com’s CEO. “I’m pleased to see our increased revenue and an increase in the total monthly active players, although the results have come at a significant cost. We invested heavily into marketing placements in the first quarter and the response from our target market has been extremely positive. However, given the large size of our investment, we believe it will take many months before the full benefits of the campaign are realized and returns secured. We continue to support the marketing in target jurisdictions with lower intensity. Bingo.com has recorded a significant loss in the first quarter of 2011. This is primarily a result of the high marketing costs and large one-time charges stemming from our restructuring efforts which are now complete. The remaining future costs of Bingo.com are now focused on the marketing function of the organization as we invest to generate increasing amounts of targeted traffic to build a large base of valuable customers.”
Our Total revenue for the quarter ended March 31, 2011, was $247,044 an increase of 123% from revenue of $110,884 in the fourth quarter of 2010 and a decrease of 80% from revenue of $1,254,792 for first quarter of 2010. Gaming Revenue for the quarter ended March 31, 2011, was $231,177, an 148% increase from revenue of $93,128 in the fourth quarter of 2010 and a decrease of 81% compared Gaming Revenue of $1,209,269 in the first quarter of 2010. The increase in revenue compared to the fourth quarter of fiscal 2010, is the result of the television marketing campaign which was launched in the first quarter of 2011. The decrease compared to the first quarter of fiscal 2010 is due to the migration during the second quarter of fiscal 2010 of our players to the Unibet’s Partner Program and a second change in platform within six months. We earned advertising revenue of $15,867 in the quarter ended March 31, 2011, a decrease of 11% from advertising revenue of $17,756 in the fourth quarter of 2010, and a decrease of 65% from advertising revenue of $45,523 in the first 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 increased to $987,749 in the first quarter of 2011, an increase of 36% over operating expenses of $719,373 in the first quarter of 2010 and an increase over operating costs of $323,483 in the fourth quarter of 2010. The increase in operating expenses compared to the first and
fourth quarter of 2010, is the result of a television marketing campaign in first quarter of 2011 and the restructuring costs, including severance payments to staff.
Sales and marketing expenses increased to $496,679 for the quarter ended March 31, 2011, an increase from expenses of $72,791 in the fourth quarter of 2010 and an increase over expenses of $314,087 in the first quarter of 2010. Sales and marketing expenses include marketing costs, signup bonuses, and other bonuses and incentives offered to gaming players. The increase in sales and marketing expenses for the quarter ended March 31, 2011, compared to the first and fourth quarter of 2010 is the result of the television marketing campaign in the first quarter of fiscal 2011.
General and administrative expenses consist primarily of premises costs for our office, legal and professional fees, and other general corporate and office expenses. General and administrative expenses decreased to $75,430 for the first quarter of 2011, a decrease of 45% from costs of $136,806 for the first quarter of 2010 and an increase of 19% from costs of $63,447 in the fourth quarter of 2010. General and administrative expenses have decreased in comparison to the prior year due to the migration to the Unibet Partner Program whereby we have reduced many of our costs, especially the development of the bingo.com website. The increase in general and administrative expenses compared to the fourth quarter of fiscal 2010, is due to the accrual for the 2011 Annual General Meeting.
Net loss for the three months ended March 31, 2011, amounted to $743,332, a loss of $0.01 per share, an increase in net loss of 116% compared to a net loss of $344,806, a loss of $0.01 per share for the same period in 2010 and a increase in net loss of 185% compared to a net loss of $260,682 or $0.01 per share in the fourth quarter of 2010. The increase in net loss for the quarter ended March 31, 2011, compared to the first and fourth quarter of 2010, is primarily a result of the television marketing campaign and the retrenchment of staff.
We had cash of $839,635 and positive working capital of $988,249 at March 31, 2011. This compares to cash of $1,396,384 and positive working capital of $1,723,394 at December 31, 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.
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
- (264) 461-2646