November 14, 2006
Bingo.com Announces Third Quarter Results
ANGUILLA, B.W.I., November 14, 2006 / Bingo.com, Ltd. (OTC BB: BNGOF), operator of the World’s Largest Bingo Hall, today announced its financial results for the third quarter ended September 30, 2006. All amounts are presented in United States dollars and in accordance with United States Generally Accepted Accounting Principles.
“It was a challenging quarter for Bingo.com,” said Tarrnie Williams, the Company’s CEO. “We were unable to maintain our strong revenue growth due to unforeseen and persistent software problems combined with slower summer demand. Unfortunately, once the software problems had been corrected, it was too late in the quarter to attain the revenue growth previously enjoyed. As a result, given our pre-planned marketing expenses, we were regrettably unable to maintain profitability. Just as our cash business was starting to improve again, the quarter ended with the unfortunate passing of the United States Unlawful Internet Gambling Enforcement Act, thereby creating unplanned challenges for the Company and causing us to refocus on emerging markets.”
“On the positive side,” added Mr. Williams, “the Company, in the quarter, completed its market studies and initial preparations for Bingo.com’s entry into the United Kingdom, thereby significantly shortening the time required to enter this growing market. Our planning, combined with the rapid disposition of our United States cash business, puts us in a strong position to return to profitability.”
Bingo.com results of the third quarter of 2006 included:
- Completion of market studies for cash bingo expansion.
- Total revenue of $833,543, a decrease of $62,734 from the second quarter of 2006.
- Online gaming revenue of $821,893, a decrease of $61,234 from the second quarter of 2006.
- A net loss of $51,251 for the quarter.
- Subsequent to the quarter ended September 30, 2006, the Company sold its US cash players for US$1.2 million in response to the United States Unlawful Internet Gambling Enforcement Act.
Of the $833,543 revenue for the quarter, gaming provided revenue of $821,893, a substantial increase from gaming revenue of $197,873 in the third quarter of 2005 and a decrease of 7% from gaming revenue of $883,127 in the second quarter of 2006. We recorded advertising revenue of $11,650 in the quarter ended September 30, 2006, a substantial decrease from advertising revenue of $267,860 in the third quarter of 2005 and a decrease of 11% from advertising revenue of $13,150 in the second quarter of 2006. This decrease is due to Managements decision to suspend the sale of advertising available to third parties in order to increase the number of players on our cash games, thereby increasing revenue. Total revenue increased to $833,543 for the quarter ended September 30, 2006, an increase of 79% from revenue of $465,733 for the same period in the prior year and a decrease of 7% from revenue of $896,277 in the second quarter of 2006. The increase in revenue over the third quarter of 2005, is due to an increase in the number of cash players playing at Bingo.com. The decrease in revenue compared to the second quarter of 2006, is due to a combination of a slow down in the summer months and gaming software problems experienced during the quarter.
For more information contact:
- Henry Bromley
- (264) 461-2646