February 28, 2008
ANGUILLA, B.W.I., February 28, 2008 / Bingo.com, Ltd. (OTC BB: BNGOF), operator of the World’s Largest Bingo Hall, today announced its unaudited financial results for the fourth quarter ended December 31, 2007. All amounts are presented in United States dollars and in accordance with United States Generally Accepted Accounting Principles.
“The fourth quarter of 2007 was considerably better than that of 2006” said Tarrnie Williams, the Company’s CEO. “Last year we were scrambling to recover from the forced sale of our US facing gaming business due to the passing of the United States Unlawful Internet Gambling Enforcement Act. This year we are comfortably underway to a return to profitability and have a growing customer base in the regulated market of the United Kingdom. We are reducing our loss, quarter by quarter, and are extremely pleased with the positive responses we’ve received from our new players regarding our new website and games. The strength of our URL www.bingo.com continues to provide us with new players at a very low acquisition cost compared to the competition and our new software platform has been a hit with the bingo players. While there are many hurdles yet to overcome we are confident that our offering will continue its current rate of growth and that Bingo.com will be a major player in this highly competitive market.”
Bingo.com highlights of the fourth quarter of 2007 included:
- Total revenue of $1,135,844, an increase from total revenue of $989,576 in the third quarter of 2007 and $238,025 in the second quarter of 2007.
- Reduced Loss to $173,262 in the fourth quarter of 2007 from $395,787 in the third quarter of 2007 and $534,327 in the second quarter of 2007.
- Two £10,000 jackpot winners
- Total Revenue for 2007 of $2,369,745.
Total revenue for the quarter ended December 31, 2007, increased to $1,135,844, a significant increase from revenue of $103,630 for the same period in the prior year and an increase of 15% from revenue of $989,576 in the third quarter of 2007. Of the $1,135,844 revenue for the quarter, the gaming operations provided revenue of $1,045,259, an increase from gaming revenue of $94,780 in the fourth quarter of 2006 and an increase of 9% from gaming revenue of $954,815 in the third quarter of 2007. This increase compared to the fourth quarter of 2006, is solely due to the Company selling its US based gaming business, effective October 12, 2006, in response to the United States Unlawful Internet Gambling Enforcement Act of 2006, after which the Company had no gaming Revenue until April 20, 2007 at which time it commenced its online gaming operation in the United Kingdom. The increase compared to the third quarter of 2007, is due to an increase in player base. The advertising revenue for the quarter ended December 31, 2007, was $90,585, a significant increase from advertising revenue of $8,850 in the fourth quarter of 2006 and an increase of 161% from advertising revenue of $34,761 in the third quarter of 2007. This increase in advertising is due to the Company finding new sources of advertising customers.
Cost of revenue increased to $783,883 during the fourth quarter of 2007, an significant increase compared to cost of revenue of $37,072 in the fourth quarter of 2006 and an increase of 74% from cost of revenue of $451,187 during the third quarter of 2007. Cost of revenue primarily consists of bonuses granted on deposits made by our players to encourage them to continue to play on our website. The awarding of deposit bonuses is required both to be competitive with other bingo-oriented websites and to build a large customer base as quickly as possible.
Sales and marketing expenses of $302,066 during the fourth quarter of 2007, showed a decrease of 48% over expenses of $576,730 during the third quarter of 2007 and an increase over sales and marketing expenses of $112,368 in the fourth quarter of 2006. These costs include sign up bonuses and incentives, commissions, advertising, and other promotional expenses intended to increase our subscriber base and improve gaming revenue. The increase compared to the fourth quarter of 2006, is due to the launch of the UK gaming site during 2007. The decrease compared to the third quarter of 2007, is due to no television marketing during the fourth quarter of 2007 as a result of the advertising ban implemented with the introduction of the UK Gambling act on September 1, 2008.
General and Administrative expenses consist of salaries, premises costs for our office, legal and professional fees, and other general corporate and office expenses. These expenses increased to $401,372 for the fourth quarter of 2007, a significant increase from general and administrative expenses of $278,327, in the fourth quarter of 2006 and an increase of 3% from expenses of $390,557 for the third quarter of 2007. This increase is due to an increase in staff and payroll costs.
During the quarter ended December 31, 2007, the Company collected $107,486 held at the First Curaçao International Bank, which had been placed under the control of the Central Bank of Curaçao by the Court of the Netherlands Antilles. The Company had previously fully provided for this receivable.
During the quarter ended December 31, 2007, the Company settled its legal dispute with Campney & Murphy for a gain of $56,220.
Net loss for the three months ended December 31, 2007, amounted to $173,262, a loss of $0.01 per share, compared to a net loss of $336,727 or $0.01 per share in the fourth quarter of 2006 and net loss of $395,787 or $0.01 per share in the third quarter of 2007.
We had cash of $744,596 and working capital of $648,123 at December 31, 2007. This compares to cash of $521,203 and working capital of $475,824 at December 31, 2006 and cash of $960,592 and working capital of $823,128 at September 30, 2007.
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 www.bingo.com.
Bingo.com, Ltd. operates the popular web portal www.bingo.com offering free and cash games including multiplayer bingo, sweepstakes, slot machines, and more. With over 1,800,000 registered users and more than 800 new users everyday, www.bingo.com is one of the most recognized and most visited Bingo entertainment destinations on the web.
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 April 2, 2007, 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
BINGO.COM, LTD. Consolidated Balance Sheets
BINGO.COM, LTD. Consolidated Statements of Operations For the periods ended December 31, 2007 and 2006 (Unaudited)
BINGO.COM, LTD. Consolidated Statements of Stockholders’ Equity For the year ended December 31, 2007 (Unaudited)
BINGO.COM, LTD. Consolidated Statements of Cash Flows For year Ended December 31, 2007 and 2006