February 19, 2013
Bingo.com Announces 2012 Year End & Profitable Q4 Results
ANGUILLA, B.W.I., February 19, 2013 / Bingo.com, Ltd. (OTC BB: BNGOF), owner of the popular online gaming community http://www.bingo.com, today announced its unaudited financial results for the fourth quarter and the year ended December 31, 2012. All amounts are presented in United States dollars and in accordance with United States Generally Accepted Accounting Principles.
Recent Bingo.com highlights include:
- Total revenue increased to $1,765,827 for the year ended December 31, 2012, an increase of 25% over revenue of $1,416,658 for the same period in the prior year.
- Total loss for the year ending December 31, 2012 was $46,235 compared to a loss of $689,016 for the year ending 2011.
- Total profit for the quarter ended December 31, 2012, was $38,606, an improvement of 26% from profit of $30,638 for the same period in the prior year and an increase of 33% from a profit of $29,002 in the third quarter of 2012;
- Total revenue for the quarter ended December 31, 2012, was $554,031, an increase of 42% from revenue of $389,390 for the same period in the prior year and an increase of 21% from revenue of $457,748 in the third quarter of 2012;
- Two separate financings in Q4 2012, of 1,000,000 common shares each, both at $0.45 per share raising $900,000 in total.
“2012 was an excellent year for Bingo.com,” said Jason Williams, the Company’s CEO. “With our restructuring complete, we commenced an aggressive marketing strategy to increase revenue as quickly, and cost effectively, as possible. With each quarter in 2012 showing improved profitability we feel our strategy is working. We will continue this aggressive approach in existing markets, and expand into new territories in 2013.”
“The financings,” said Williams, “were completed to fund our marketing efforts and the development of special internal projects. Bingo.com will be entering the social, free-to-play bingo market with an innovative multi-platform game. The game is scheduled to launch as a beta product early in the second quarter of this year. Bingo.com intends to continue investing in the strategies and areas that have the greatest potential for revenue growth and profits.”
Total revenue increased to $1,765,827 for the year ended December 31, 2012, an increase of 25% over revenue of $1,416,658 for the same period in the prior year. Gaming revenue increased to $1,721,134 for the year ended December 31, 2012, an increase of 27% over gaming revenue of $1,349,953 for the same period in the prior year. This increase compared to the prior year is due to an increase in players to the website as a result of increased marketing. Advertising Revenue decreased to $44,693 for the year ended December 31, 2012, a decrease of 33% over revenue of $66,705 for the same period in the prior year.
Operating costs before interest, and depreciation expenses, including sales and marketing and general and administrative expenses increased to $513,491 in the fourth quarter of 2012, an increase of 44% over operating expenses of $356,521 in the fourth quarter of 2011 and an increase of 20% over operating costs of $427,773 in the third quarter of 2012. The increase in operating expenses compared to the fourth quarter of 2011 and the third quarter of 2012, is due an increase in sales and marketing expenses to increase player activity.
Sales and marketing expenses were $419,954 during the fourth quarter of 2012, an increase of 113% over expenses of $197,172 during the fourth quarter of 2011 and an increase of 35% over sales and marketing expenses of $310,712 in the third quarter of 2012. Selling and marketing expenses principally include Bingo.com marketing campaigns, affiliate commissions, Search Engine Optimization, and other promotional expenses intended to increase our player base and improve gaming revenue. The increase in sales and marketing expenses for the quarter ended December 31, 2012, compared to the fourth quarter of 2011, and the third quarter of 2012, is due to an increase in active marketing campaigns.
General and Administrative expenses consist of salaries, premises costs for our offices, legal and professional fees, and other general corporate and office expenses. General and administrative expenses were $50,155 during the fourth quarter of 2012, an increase of 5% from general and administrative expenses of $47,594, in the fourth quarter of 2011 and a decrease of 13% from expenses of $57,570 for the third quarter of 2012. General and administrative expenses have decreased since joining the Unibet Partner Program as it has enabled us to reduce many of our costs.
The net income after taxation for the three months ended December 31, 2012, amounted to $38,606, a gain of $0.00 per share, compared to a net loss of ($30,638) or ($0.00) per share in the fourth quarter of 2011 and an increase of 33% on a profits, of $29,002 or $0.00 per share in the third quarter of 2012.
The net loss after taxation for the twelve months ended December 31, 2012, amounted to $46,235, a loss of ($0.00) per share, compared to a net loss of ($689,016) or ($0.01) per share in the twelve months ending December 31st, 2011.
We had cash of $876,004 and working capital of $1,640,713 at December 31, 2012. This compares to cash of $787,524 and working capital of $1,058,631 at December 31, 2011, and cash of $574,787 and working capital of $980,660 at September 30, 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/A, filed with the SEC on August 9, 2012, 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
Unaudited Consolidated Balance Sheets
Unaudited Consolidated Statements of Operations For the periods ended December 31, 2012 and 2011
Unaudited Consolidated Statements of Stockholders’ Equity For the year ended December 31, 2012 (Unaudited)
Unaudited Consolidated Statements of Cash Flows For Year Ended December 31, 2012 and 2011