August 14, 2007
Bingo.com Announces Second Quarter Results
ANGUILLA, B.W.I., August 14, 2007 / Bingo.com, Ltd. (OTC BB: BNGOF), operator of the World’s largest online bingo hall, today announced its financial results for the second quarter ended June 30, 2007. All amounts are presented in United States dollars and in accordance with United States Generally Accepted Accounting Principles.
“The launch of Bingo.com in the United Kingdom is now behind us” said Tarrnie Williams, CEO of Bingo.com. “It was a difficult and expensive task to change our gaming software, rebuild the Bingo.com website, and redesign our marketing efforts, but it is now complete. We are pleased with the initial results from the marketing campaigns we have engaged on television and through our affiliate marketing relationships. In the past three months we have built a solid base of players which provide the necessary liquidity to our bingo games. The Bingo.com URL continues to drive significant gaming traffic and we are confident in our potential for a return to profitability.”
Bingo.com results of the second quarter of 2007 included:
- Launch of the United Kingdom www.bingo.com website.
- Revenue of $283,950 compared to revenue of $6,300 in the first quarter of 2007.
- A net loss of $535,912, compared to the net loss of $328,967 in the first quarter of 2007.
Total revenue for the quarter ended June 30, 2007, increased to $283,950 from revenue of $6,300 in the first quarter of 2007, and decreased from revenue of $896,277 for the same period in the prior year. This increase over the first quarter of 2007 was due to the launch of our UK focused website in May, 2007. During the quarter ended June 30, 2007 we had Gaming Revenue of $265,650, compared to Gaming Revenue of $nil in the first quarter of 2007, and revenue of $883,127 in the second quarter of 2006. The decrease of gaming revenue from the prior year was due to the cessation of providing gaming in the US, in response to the passing of the United States Unlawful Internet Gambling Enforcement Act of 2006. We earned advertising revenue of $12,000 in the quarter ended June 30, 2007, an increase from advertising revenue of $6,300 in the first quarter of 2007, and a decrease of 9% from advertising revenue of $13,150 in the second quarter of 2006.
Operating costs before interest, depreciation and amortization expenses increased to $528,010 in the second quarter of 2007, an increase of 43% over operating costs of $368,833 in the first quarter of 2007 and a decrease of 11% over operating expenses of $580,324 in the second quarter of 2006. The increase in operating expenses compared to the first quarter of 2007, is primarily due to the increase in the sales and marketing expenses in relation to launching the United Kingdom website, especially a television marketing campaign.
Net loss for the quarter ended June 30, 2007, amounted to $535,912, an increase of 63% in net loss compared to net loss of $328,967 for the first quarter of 2007, and an increase in net loss compared to net income of $55,549 in the second quarter in the prior year. This increase in net loss is primarily due to the increase in the sales and marketing expenses in relation to launching the United Kingdom website, and the provision of incentives to new players to play at Bingo.com for the first time.
We had cash of $1,243,308 and working capital of $1,180,150 at June 30, 2007. This compares to cash of $521,203 and working capital of $475,824 at December 31, 2006.
Bingo.com, Ltd. operates the popular web portal www.bingo.com offering online games world wide including multiplayer bingo, video poker, sweepstakes, slot machines, and more. With over 1,750,000 registered players, 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, 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