August 14, 2008
ANGUILLA, B.W.I., August 14, 2008 / Bingo.com, Ltd. (OTC BB: BNGOF), operator of the popular online gaming community http://www.bingo.com, today announced its unaudited financial results for the second quarter ended June 30, 2008. All amounts are presented in United States dollars and are in accordance with United States Generally Accepted Accounting Principles.
Bingo.com highlights of the second quarter of 2008 included:
- Total revenue of $1,415,858, up 5% from total revenue of $1,344,347 in the first quarter of 2008 and $1,135,844 in the fourth quarter of 2007.
- Net loss of $235,188 in the second quarter of 2008, down 10% from net loss of $262,543 in the first quarter of 2008 and down 30% from net loss before abnormal items of $336,968 in the fourth quarter of 2007.
- Completed a $600,000 non brokered private placement.
“In the second quarter of 2008, Bingo.com made some important strides towards returning to profitability,” said Tarrnie Williams, the Company’s CEO. “Despite not yet acquiring licensing status enabling us to advertise in the UK, we acquired thousands of new real-money players, increased our revenues, decreased our net loss, and further developed the entertainment available at Bingo.com. We remain focused on launching Bingo.com into new markets and enhancing the product offering of games at our website as we finalize obtaining a tier one gaming license, expected in the fourth quarter of this year. To help us achieve these goals and provide additional marketing support we secured a $600,000 private placement of our common shares for the Company. The gaming traffic to Bingo.com remains stronger than ever and we believe our strategies will return us to profitability.”
Total revenue increased to $1,415,858 for the quarter ended June 30, 2008, an increase from revenue of $238,025 for the second quarter of 2007 and an increase of 5% from revenue of $1,344,347 in the first quarter of 2008. We had Gaming Revenue of $1,337,441 in the quarter ended June 30, 2008, compared to Gaming Revenue of $226,025 in the second quarter of 2007 and an increase of 6% from gaming revenue of $1,260,470 in the first quarter of 2008. The increase compared to the second quarter of 2007 and the first quarter of 2007, is due to an increase in our player base. We earned advertising revenue of $78,417 in the quarter ended June 30, 2008, an increase from advertising revenue of $12,000 in the second quarter of 2007 and a decrease of 7% from advertising revenue of $83,877 in the first quarter of 2008.
Operating costs before interest, depreciation and amortization expenses increased to $753,403 in the second quarter of 2008, an increase of 9% over operating costs of $693,847 in the first quarter of 2008 and an increase of 15% over operating expenses of $654,646 in the second quarter of 2007. The increase in operating expenses compared to the first quarter of 2008 and the second quarter of 2007 is primarily due to the increase in the sales and marketing expenses, especially marketing bonuses granted to players. In addition there was an increase in professional accounting fees in relation to the Company’s subsidiaries.
Net loss for the quarter ended June 30, 2008, amounted to $235,188, a loss of $0.01 per share, a decrease of 10% in net loss compared to net loss of $262,543 or $0.01 per share for the first quarter of 2008, and a decrease of 56% in net loss of $534,327 or $0.02 per share in the second quarter in the prior year. The decrease in net loss compared to net loss in the first quarter of 2008 and net loss in the second quarter of 2007, is due to an increase in gaming revenue as a result of the launching the cash games in the United Kingdom.
We had cash of $920,308 and working capital of $730,216 at June 30, 2008. This compares to cash of $744,596 and working capital of $648,123 at December 31, 2007.
During the quarter ended June 30, 2008, we completed a non-brokered private placement of 2 million common shares at $0.30 per share. Total proceeds of the placement was $600,000.
For full details of the Company’s 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. (OTC BB: BNGOF) is the parent company of the Bingo.com group of companies which operates the popular online gaming community http://www.bingo.com. The Bingo.com group offers multiplayer bingo, slot machines, sweepstakes, and more. Players come together from around the world to chat, share, play and win at Bingo.com. With over 1,900,000 registered users http://www.bingo.com is one of the most recognized and most visited bingo entertainment destinations on the Internet.
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 March 28, 2008, 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