November 14, 2007
Bingo.com Announces Third Quarter Results
ANGUILLA, B.W.I., November 14, 2007 / Bingo.com, Ltd. (OTC BB: BNGOF), operator of the World’s largest online bingo hall, today announced its financial results for the third quarter ended September 30, 2007. All amounts are presented in United States dollars and in accordance with United States Generally Accepted Accounting Principles.
“The third quarter has been a particularly satisfying quarter for Bingo.com.” said Tarrnie Williams, CEO of Bingo.com. Month over month, since commencing gaming operations in the United Kingdom on April 23, 2007, we have grown our customer base, increased our market share, and reduced our operational expenses on a percentage of revenue basis, all of which has significantly increased our revenue and helped to reduce our quarterly loss as we work to return to profitability.”
Highlights for the quarter include:
- Added a ‘Speed Bingo’ 80 ball bingo room to our offering.
- Gaming Revenue increased from $265,650 in the second quarter of 2007 to $1,048,338 in the third quarter of 2007.
- Reduced Loss from $535,912 in the second quarter of 2007 to $399,528 in the third quarter of 2007.
Total revenue increased to $1,083,099 for the quarter ended September 30, 2007, an increase of 290% from revenue of $277,650 in the second quarter of 2007, with gaming revenue increasing from $265,650 to $1,048,338 and advertising revenue growing from $12,000 to $34,761 in the third quarter of 2007.
Cost of revenue increased to $484,521 during the third quarter of 2007, an increase of 181% compared to costs of $172,176 in the second quarter of 2007. Cost of revenue primarily consists of bonuses granted on deposits made by our players to encourage them to continue to play on our website. The awarding of deposit bonuses is required both to be competitive with other bingo-oriented websites and to build a large customer base as quickly as possible. Sales and marketing expenses increased to $640,660 during the third quarter of 2007, an increase of 108% over expenses of $308,240 in the second quarter of 2007. These costs include sign up bonuses and incentives, commissions, advertising, and other promotional expenses intended to increase our subscriber base and improve gaming revenue. 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 increased to $360,469 for the third quarter of 2007, an increase of 12%, from $320,474 in the second quarter of 2007.
Net loss for the three months ended September 30, 2007, amounted to $399,528, a loss of $0.01 per share, compared to a net loss of $535,912 or $0.02 per share in the second quarter of 2007. We had cash of $960,592 and working capital of $819,387 at September 30, 2007. This compares to cash of $1,243,308 and working capital of $1,180,150 at June 30, 2007.
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 www.bingo.com.
Bingo.com, Ltd. operates the popular web portal www.bingo.com offering online games world wide including multiplayer bingo, video poker, sweepstakes, slot machines, and more. With over 1,750,000 registered players, www.bingo.com is one of the most recognized and most visited Bingo entertainment destinations on the web.
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-KSB, filed with the SEC on April 2, 2007, and the prospectus filed under Rule 424(b) of the Securities Act on March 9, 2005, 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
- (264) 461-2646