November 14, 2000
Bingo.com Third Quarter Revenues Show Sequential 945% Increase Over Second Quarter
‘Stickiest Site on the Internet’ Registers 10.5 Million Visits During Three-Month Period; Growth for Year Remains Strong
MARINA DEL REY, Calif., Nov. 14 /PRNewswire/ — Bingo.com, Inc. (OTC Bulletin Board: BIGR), a fast-growing entertainment site and game application service provider (ASP), today announced revenues of $544,416 for the fiscal quarter ended Sept. 30, 2000, compared with no revenues for the same year-earlier quarter. The most recent quarter’s performance represented a 945 percent rise over revenues of $57,588 in the quarter ended June 30, 2000.
The revenues improvement resulted from the sale of advertising on http://www.bingo.com and co-branding agreements with other popular Web sites. During the quarter, Bingo.com was rated “The Stickiest Site on the Internet” by the renowned A.C. Neilsen/Net Ratings organization which determined that the average Bingo.com player spends approximately nine hours per month playing on the company’s Web site.
Net loss for the three months ended Sept. 30, 2000, was $1,088,564 or $0.11 per share, compared with a loss of $699,212 or $0.07 per share for the period ended Sept. 30, 1999. The increase in loss is attributable to significant non-cash items recorded in the quarter. Excluding the non-cash items, the loss of the three months ended Sept. 30, 2000 is $620,690, compared to $663,361 for the same period in 1999. The non-cash items included in the loss figures are depreciation and amortization, primarily associated with the amortization of the company’s domain name, totaling $179,880, stock-based compensation costs of $247,833, provisions for non-collectable accounts of $21,126, and imputed interest charges on the domain name costs of $19,035. The only non-cash item in the same period in 1999 was depreciation and amortization of $35,851.
Shane Murphy, Bingo.com’s CEO, said, “We are pleased to report that our company has been experiencing tremendous growth this year, reaching 339,300 registered users as of Sept. 30, 2000, a 61 percent rise over the 211,100 registered users at the end of the second quarter and 218 percent over the first quarter.” He said the site attracted in excess of 38,000 unique visitors per day in the third quarter, compared with 27,000 unique visitors per day during the second quarter and 15,000 in the first. There were approximately 10.5 million visitors to the site during the most recent quarter, including some 3.3 million player sessions offered to the company’s registered users. The visitor session length grew to an average of approximately 65 minutes, compared to a 50 minute average in the first quarter and 62 minutes in the second quarter.
“The average user session on 99 percent of Internet sites is a matter of a few minutes,” Murphy said. “We believe this attractiveness of our product will not only help advertising sales and co-branding, but plays into our plan to expand our proven business model into other industries. This growth is also a positive example of how our business model is maturing despite a turbulent time in the technology market. The fact that we progressed so strongly during this difficult period is a testament to the hard work and commitment of our employees and evidence that demand for our unique products is strong. “
During the nine months ended Sept. 30, 2000, the company reported revenues of $606,284 compared with no revenues for the nine months ended Sept. 30, 1999. Net loss for the nine months ended Sept. 30, 2000, was $2,751,363, or $0.27 per share, compared with a loss of $1,438,971, or $0.16 per share, for the same prior-year nine-month period. The increase in loss was attributed to the relocation of the company’s primary office, expansion of Web site capacity, increased amortization expense associated with the amortization of the company’s domain name, the final steps of dissolving Antigua-based operations, and a downward re-pricing of company stock options.
Bingo.com is in the business of developing and operating an entertainment based Web site and application service provider (ASP). Their primary Web presence, http://www.bingo.com is enormously popular and was recently named “The Stickiest Site on the Internet” by NetRatings, Inc., the Internet arm of AC Nielsen Ratings.
Bingo.com relocated its principal executive offices to Los Angeles, Calif., earlier in the year, to facilitate the implementation of its revised business plan, which focuses on the on-line entertainment industry. The relocation provides the company with access to the industry talent pool, a larger prize sponsor base and audience for future revenue generation, financing and partnering opportunities.
For more information about Bingo.com, please visit the company’s Web site at http://www.bingo.com.