July 23, 2013
Bingo.com Announces Q2 Results with a Return to Profitability
ANGUILLA, B.W.I., July 23, 2013 / Bingo.com, Ltd. (OTCQB: BNGOF), owner of the popular online gaming community http://www.bingo.com, today announced its unaudited financial results for the second quarter ended June 30, 2013. All amounts are presented in United States dollars and in accordance with United States Generally Accepted Accounting Principles.
Recent Bingo.com highlights include:
- • Profit of $10,449 for the quarter ended June 30, 2013 compared to a loss of ($471,189) in the first quarter of 2013 and a loss of ($28,908) in second quarter of 2012.
- • Fund raising of $900,000 at $0.45 per share in the quarter.
- • Beta launch of Trophy Bingo into the social casino market on iOS, Android, and Facebook.
- • Migration of Bingo.com website to a new platform on the Unibet system.
“We are very pleased with our return to profitability. With an increased focus on retention and monetization of the players we acquired in the first quarter, we were able to secure a small profit despite reduced gaming activity resulting from the website migration and a reduction in marketing spend.” said Jason Williams, Bingo.com’s CEO.
“The second quarter of 2013 also contained several key milestones for the Company,” continued Mr. Williams. “First, Bingo.com successfully completed the beta launch of Trophy Bingo, the Company’s entry into the social casino marketplace on Apple’s iOS, Google’s Android and Facebook’s game platform. The initial results have been very positive and we are currently working on planned improvements to the social features contained in the game before it enters its global launch. The analytics received to date from our on-going beta test include positive retention statistics which indicate the game is popular with players and we remain confident in our decision to enter this new market. We continue to invest significantly in the development of Trophy Bingo and look forward to its pending global launch and the monetization of this innovative new game.”
“The second milestone Bingo.com achieved during the quarter was the migration of its entire website and gaming technology to a new platform provided by Unibet. With this migration complete, Bingo.com can now offer its cash players a wider range of casino games, bonuses, and other incentives designed to increase player activity. While the new site is technically superior and we anticipate that it will result in higher gaming activity in the future, including on smart phones and tablets, the migration process has unfortunately had a negative impact on Bingo.com’s gambling turnover in the short-term. We’re looking forward to recommencing the marketing of Bingo.com’s new gambling platform in our target jurisdictions and returning the Company to growth,” continued Williams. “However, the summer months can be difficult for player acquisition so we will be cautious with our marketing budget until we fully understand the strengths of our new gaming system.”
Total Revenue for the quarter ended June 30, 2013, was $491,259, an increase of 41% from revenue of $347,742 for second quarter of 2012 and a decrease of 17% from revenue of $590,199, in the first quarter of 2013. Gaming revenue was $486,394, an increase of 43% in the quarter ended June 30, 2013, compared gaming revenue of $339,869 in the second quarter of 2012 and a 17% decrease from revenue of $582,760
in the first quarter of 2013. This increase in revenue compared to the second quarter of 2012 is due to a higher number of active players as a result of increased marketing. However, marketing investments were lower in the second quarter of 2013 compared to the marketing activity in the first quarter of 2013 and combined with the disruption from the website migration, our gaming revenues were lower. We earned advertising revenue of $4,865 in the quarter ended June 30, 2013, a decrease of 38% from advertising revenue of $7,873 in the second quarter of 2012 and a decrease of 35% from advertising revenue of $7,439 in the first quarter of 2013.
Operating costs before interest, and depreciation expenses, including sales and marketing and general and administrative expenses increased to $479,963 in the second quarter of 2013, an increase of 28% over operating expenses of $375,748 in the second quarter of 2012 and a decrease of 55% over operating costs of $1,060,985 in the first quarter of 2013. The increase in operating expenses compared to the second quarters of 2012, is due to the increase in marketing expenses, however we significantly reduced the marketing spend in the second quarter of 2013 compared to the first quarter of 2013.
Sales and marketing expenses were $303,239 for the quarter ended June 30, 2013, an increase of 61% over expenses of $188,411 in the second quarter of 2012 and a decrease of 65% from expenses of $868,789 in the first quarter of 2013. Sales and marketing expenses principally include costs for television marketing, Search Engine Optimization expenses, prizes for our players and other bonuses and incentives offered to gaming players. The increase in sales and marketing expenses for the quarter ended June 30, 2013, compared to the second of 2012 is due to a larger media budget in the second quarter of fiscal 2013, however this budget was reduced compared to the media budget in the first quarter of 2013.
Net income for the three months ended June 30, 2013, amounted to $10,449, income of $0.00 per share, an increase in net income compared to net loss of ($28,908), a loss of ($0.00) per share for the same period in 2012 and an increase in net income compared to a net loss of ($471,189) or loss of ($0.01) per share in the first quarter of 2013.
We had cash of $992,168 and positive working capital of $1,504,144 at June 30, 2013. This compares to cash of $876,004 and positive working capital of $1,640,713 at December 31, 2012.
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. (OTCQB: 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. The Bingo.com website has attracted millions of visitors from over 200 countries and 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.unibet.com).. Bingo.com, Ltd. (OTCQB: BNGOF) trades on the OTCQB, the venture marketplace for companies that are current in their reporting with a U.S. regulator. Investors can find real time quotes and market information for the Company at http://www.otcmarkets.com/stock/BNGOF/quote.
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 29, 2013, 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
- (264) 461-2646