May 15, 2006
Bingo.com Announces First Quarter Results
“Bingo.com recorded strong growth in its Internet traffic and gaming operations during the quarter,” commented Tarrnie Williams, the Company’s CEO. “The decision to remove competitive third party advertising from the website has resulted in significant increases to the Company’s own real money games. With the recent launch of the new Bingo.com website and the expansion of our marketing efforts we expect revenues and market share to continue to grow throughout 2006.”
Of the $710,011 in revenue for the quarter, the online gaming operations provided revenue of $593,965, an increase of 68% from gaming revenue of $353,348 in the fourth quarter of 2005. This increase in gaming revenue over the fourth quarter of 2005 is due to an increase in the number of real money bingo players visiting the Bingo.com website in the quarter. Total revenue increased to $710,011 for the quarter ended March 31, 2006, an increase of 8% from revenue of $654,438 in the fourth quarter of 2005 and an increase of 76% from revenue of $403,551 for the first quarter of 2005. The Company earned advertising revenue of $116,046 in the quarter ended March 31, 2006, a decrease of 61% from advertising revenue of $301,090 in the fourth quarter of 2005. This decrease is due to Management’s decision to suspend the sale of advertising available to third parties in order to increase the traffic to our own gaming operations.
Operating costs before interest, depreciation and amortization expenses increased to $505,931 in the first quarter of 2006, an increase of 5% over operating costs of $479,781 in the fourth quarter of 2005. The increase in operating expenses is primarily due to the increase in the number of personnel and the resulting increase in compensation.
Net income for the quarter ended March 31, 2006, amounted to $18,594, a decrease of 54% in net income compared to net income of $40,095 for the fourth quarter of 2005, and a decrease of 42% compared net income of $32,209 in the first quarter in the prior year. Although there was an increase in online gaming revenue as a result of an increase in traffic, the decrease in net income compared to the first and fourth quarter of 2005, is due to an increase in personnel costs.
The Company had cash of $997,696 and working capital of $593,369 at March 31, 2006. This compares to cash of $1,071,088 and working capital of $581,855 at December 31, 2005.
For more information contact:
- Henry Bromley
- (264) 461-2646