Bingo.com, Ltd.
OTC Bulletin Board : BNGOF

Bingo.com, Ltd.

May 15, 2006 10:00 ET

Bingo.com Announces First Quarter Results

ANGUILLA, BRITISH WEST INDIES--(CCNMatthews - May 15, 2006) - Bingo.com, Ltd. (OTCBB:BNGOF), operator of the World's Largest Bingo Hall, today announced its financial results for the first quarter ended March 31, 2006. All amounts are presented in United States dollars and in accordance with United States Generally Accepted Accounting Principles.

Bingo.com highlights of the first quarter of 2006 included:

- Online gaming revenue increased to $593,965, an increase of 68% over gaming revenue of $353,348 in the fourth quarter of 2005.

- Gaming revenue increased to 91% of total revenue from 54% of revenue in the fourth quarter of 2005.

- Total revenue increased to $710,011, an increase of 8% over revenue of $654,438 in the fourth quarter of 2005.

- Recorded profit of $18,594, the seventh consecutive positive quarter.

"Bingo.com recorded strong growth in its Internet traffic and gaming operations during the quarter," commented Tarrnie Williams, the Company's CEO. "The decision to remove competitive third party advertising from the website has resulted in significant increases to the Company's own real money games. With the recent launch of the new Bingo.com website and the expansion of our marketing efforts we expect revenues and market share to continue to grow throughout 2006."

Of the $710,011 in revenue for the quarter, the online gaming operations provided revenue of $593,965, an increase of 68% from gaming revenue of $353,348 in the fourth quarter of 2005. This increase in gaming revenue over the fourth quarter of 2005 is due to an increase in the number of real money bingo players visiting the Bingo.com website in the quarter. Total revenue increased to $710,011 for the quarter ended March 31, 2006, an increase of 8% from revenue of $654,438 in the fourth quarter of 2005 and an increase of 76% from revenue of $403,551 for the first quarter of 2005. The Company earned advertising revenue of $116,046 in the quarter ended March 31, 2006, a decrease of 61% from advertising revenue of $301,090 in the fourth quarter of 2005. This decrease is due to Management's decision to suspend the sale of advertising available to third parties in order to increase the traffic to our own gaming operations.

Operating costs before interest, depreciation and amortization expenses increased to $505,931 in the first quarter of 2006, an increase of 5% over operating costs of $479,781 in the fourth quarter of 2005. The increase in operating expenses is primarily due to the increase in the number of personnel and the resulting increase in compensation.

Net income for the quarter ended March 31, 2006, amounted to $18,594, a decrease of 54% in net income compared to net income of $40,095 for the fourth quarter of 2005, and a decrease of 42% compared net income of $32,209 in the first quarter in the prior year. Although there was an increase in online gaming revenue as a result of an increase in traffic, the decrease in net income compared to the first and fourth quarter of 2005, is due to an increase in personnel costs.

The Company had cash of $997,696 and working capital of $593,369 at March 31, 2006. This compares to cash of $1,071,088 and working capital of $581,855 at December 31, 2005.

About Bingo.com

Bingo.com, Ltd. operates the popular web portal www.bingo.com offering free and cash games including multiplayer bingo, video poker, sweepstakes, slot machines, and more. With over 1,500,000 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 March 29, 2006, 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.




BINGO.COM, LTD.
(Formerly Bingo.com, Inc.)
Consolidated Balance Sheets

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March 31, December 31,
2006 2005
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(Unaudited) (Audited)
Assets
Current assets:
Cash $ 997,696 $ 1,071,088
Accounts receivable 211,687 166,540
Inventory 1,796 559
Prepaid expenses 106,364 102,040
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Total Current Assets 1,317,543 1,340,227

Equipment, net 132,757 96,273

Other assets 14,785 17,310

Domain name rights and intangible assets 1,282,370 1,284,842

Deferred tax asset, less valuation
allowance of $984,760 (December 31, 2005
- $1,004,060) (Note 3) - -
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Total Assets $ 2,747,455 $ 2,738,652
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 480,346 $ 487,226
Accrued liabilities 108,650 64,657
Accounts payable and accrued liabilities
- related party (Note 4) 89,407 71,237
Unearned revenue 45,771 135,252
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Total Current Liabilities 724,174 758,372

Long-term liabilities
Loan payable - related party (Note 4) 2,301 9,403

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Total Liabilities 726,475 767,775
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Commitments and contingencies

Stockholders' equity (Note 2):
Common stock, no par value, unlimited
shares authorized, 27,135,903 shares
issued and outstanding (December 31,
2005 - 26,775,903) 11,338,390 11,284,281
Stock options exercised - subscription
shares - 22,600
Accumulated deficit (9,341,990) (9,360,584)
Accumulated other comprehensive loss:
Foreign currency translation adjustment 24,580 24,580
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Total Stockholders' Equity 2,020,980 1,970,877

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Total Liabilities and Stockholders'
Equity $ 2,747,455 $ 2,738,652
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See accompanying notes to consolidated financial statements.



BINGO.COM, LTD.
Consolidated Statements of Operations
Three Months Ended March 31, 2006 and 2005
(Unaudited)

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2006 2005
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Advertising revenue $ 116,046 $ 403,551
Cash bingo revenue 593,965 -
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Total revenue 710,011 403,551

Cost of producing revenue 209,319 100,281
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Gross profit 500,692 303,270
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Operating expenses:
Depreciation and amortization 10,340 7,559
General and administrative 93,254 104,742
Salaries, wages, consultants and
benefits 188,916 129,410
Selling and marketing 199,190 29,360
Stock-based compensation 22,934 -
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Total operating expenses 514,634 271,071
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(Loss) income before other income
(expense) and taxes (13,942) 32,199

Other income (expense):
Foreign exchange losses (1,637) (1,770)
Gain on resolution of debt 30,241 -
Interest expense - (681)
Interest income 3,144 2,461
Other income 788 -
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Income before income taxes 18,594 32,209

Income tax expense - -
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Net income $ 18,594 $ 32,209
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Net income per common share, basic $ 0.00 $ 0.00
Net income per common share, diluted $ 0.00 $ 0.00
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Weighted average common shares
outstanding, basic 26,783,903 24,500,808
Weighted average common shares
outstanding, diluted 30,165,429 29,304,086
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See accompanying notes to consolidated financial statements.



BINGO.COM, LTD.
Consolidated Statements of Cash Flows
Three Months Ended March 31, 2006 and 2005
(Unaudited)

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2006 2005
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Cash flows from operating activities:
Net income $ 18,594 $ 32,209
Adjustments to reconcile net income to net
cash (used in) provided by operating
activities:
Depreciation and amortization 10,340 7,559
Gain on resolution of debt (30,241) -
Stock-based compensation 22,934 -
Changes in operating assets and liabilities:
Accounts receivable (45,147) 24,682
Prepaid expenses (4,324) (7,491)
Inventory (1,237) 179
Other assets 2,525 (3,355)
Accounts payable and accrued liabilities 85,524 (14,248)
Unearned revenue (89,481) 21,900
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Net cash (used in) provided by operating
activities (30,513) 61,435

Cash flows from investing activities:
Acquisition of equipment (44,352) (2,005)
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Net cash used in investing activities (44,352) (2,005)

Cash flows from financing activities:
Exercise of stock options 8,575 33,423
Repayment of loans and notes payable (7,102) (9,548)
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Net cash provided by financing
activities 1,473 23,875

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Net (decrease) increase in cash (73,392) 83,305

Cash, beginning of period 1,071,088 74,032
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Cash, end of period $ 997,696 $ 157,337
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Supplementary information:
Interest paid $ - $ 681
Income taxes paid $ - $ -
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See accompanying notes to consolidated financial statements.


Contact Information

  • Bingo.com, Ltd.
    Henry Bromley
    CFO
    (264) 461-2646
    (604) 694-0301 (FAX)
    ir@bingo.com