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Bingo.com Announces First Quarter Results(May 10, 2012)
ANGUILLA, BRITISH WEST INDIES -- (Marketwire) -- 05/11/12 -- Bingo.com, Ltd. (OTCBB:BNGOF), owner of the popular online gaming community http://www.bingo.com, today announced its unaudited financial results for the first quarter ended March 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:
-- Successful delivery of a large marketing program in target jurisdictions; -- Successful launch of Deal or No Deal Bingo and Lucky Numbers Bingo to Bingo.com's game portfolio; -- Total revenue for the quarter ended March 31, 2012, was $406,307, an increase of 64% from revenue of $247,044 for first quarter of 2011; -- Net loss for the three months ended March 31, 2011, amounted to $24,930, an improvement of $718,402 over a net loss of $743,332 for the same period in 2011.
"The first quarter of 2012 saw increased investments into our marketing programs and a resulting increase in revenue," said Jason Williams, Bingo.com's CEO. "While it's unfortunate to post a net loss for the quarter, our strategy was to make significant investments in marketing and I'm pleased that the loss is small. Our marketing campaigns continue to be effective and our brand well received in our target jurisdictions. While the number of active players is increasing, we have seen less growth in player values than previously which has impacted our total revenue growth. In the second quarter we intend to focus on player retention and with a smaller marketing investment planned, we anticipate a return to profitability."
Total revenue for the quarter ended March 31, 2012, was $406,307, an increase of 64% from revenue of $247,044 for first quarter of 2011 and an increase of 4% from revenue of $389,390 in the fourth quarter of 2011. Gaming Revenue was $386,925, an increase of 67% in the quarter ended March 31, 2012, compared Gaming Revenue of $231,177 in the first quarter of 2011 and a 5% increase from revenue of $367,560 in the fourth quarter of 2011. This increase compared to the first and fourth quarter of fiscal 2011 is due to an increase in the number of players as a result of our marketing campaigns. We earned advertising revenue of $19,382 in the quarter ended March 31, 2012, an increase of 22% from advertising revenue of $15,867 in the first quarter of 2011 and a decrease of 11% from advertising revenue of $21,830 in the fourth quarter of 2011.
Operating costs before interest, and depreciation expenses, including sales and marketing and general and administrative expenses decreased to $429,997 in the first quarter of 2012, a decrease of 56% over operating expenses of $985,099 in the first quarter of 2011 and an increase of 21% over operating costs of $356,020 in the fourth quarter of 2011. The decrease in operating expenses compared to the first quarter of 2011, is due a decrease in salaries, wages and sales and marketing expenses. The increase in operating expenses compared to the fourth quarter of 2011, is due to an increase in marketing activity.
Sales and marketing expenses decreased to $298,339 for the quarter ended March 31, 2012, a decrease of 40% over marketing expenses of $496,679 in the first quarter of 2011 and an increase of 51% from marketing expenses of $197,172 in the fourth quarter of 2011. Sales 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 decrease in sales and marketing expenses for the quarter ended March 31, 2012, compared to the first quarter of 2011 is due to the extensive marketing campaign during the first quarter of fiscal 2011, compared to the slightly smaller campaign conducted this quarter. The increase compared to the fourth quarter sales and marketing expenses is due to a larger marketing campaign in the first quarter of fiscal 2012.
Net loss for the three months ended March 31, 2011, amounted to $24,930, a loss of ($0.00) per share, a decrease in net loss of 97% compared to a net loss of $743,332, a loss of ($0.01) per share for the same period in 2011 and compared to a net gain of $30,638 or gain of $0.00 per share in the fourth quarter of 2011.
We had cash of $673,999 and positive working capital of $1,034,388 at March 31, 2012. This compares to cash of $787,524 and positive working capital of $1,058,631 at December 31, 2011.
Bingo.com, Ltd. (OTCBB: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.poweredbyunibet.com).
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 30, 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.
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