Bingo.com, Ltd.
OTC Bulletin Board : BNGOF

Bingo.com, Ltd.

February 28, 2008 03:14 ET

Bingo.com Announces Fourth Quarter Results

ANGUILLA, BRITISH WEST INDIES--(Marketwire - Feb. 28, 2008) - Bingo.com, Ltd. (OTCBB: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 Pounds Sterling 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 Curacao International Bank, which had been placed under the control of the Central Bank of Curacao 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.

About 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.



BINGO.COM, LTD.
Consolidated Balance Sheets

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2007 2006
December 31, (Unaudited) (Audited)
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Assets
Current assets:
Cash $ 744,596 $ 521,203
Accounts receivable, less allowance for
doubtful accounts
$36,778 (2006 $206,241) 143,186 218,876
Prepaid expenses 123,453 168,864
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Total Current Assets 1,011,235 908,943

Equipment, net 129,568 145,402

Other assets 110,878 30,287

Domain name rights and intangible assets 1,265,068 1,274,955

Deferred tax asset, less valuation allowance
of $754,718
(2006 - $976,167) - -
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Total Assets $ 2,516,749 $ 2,359,587
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 170,833 $ 359,806
Accrued liabilities 67,021 56,936
Accounts payable and accrued liabilities -
related party 24,772 16,377
Unearned revenue 100,486 -
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Total Current Liabilities 363,112 433,119

Long-term loan payable - related party - 1,457

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Total Liabilities 363,112 434,576
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Commitments

Stockholders' equity:
Common stock, no par value, unlimited shares
authorized,
34,025,703 shares issued and outstanding
(December 31, 2006 - 27,640,553) 13,235,820 11,574,851
Accumulated deficit (11,106,763) (9,674,420)
Accumulated other comprehensive loss:
Foreign currency translation adjustment 24,580 24,580
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Total Stockholders' Equity 2,153,637 1,925,011

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Total Liabilities and Stockholders Equity $ 2,516,749 $ 2,359,587
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BINGO.COM, LTD.
Consolidated Statements of Operations
For the periods ended December 31, 2007 and 2006
(Unaudited)

Three Months Three Months
Year ended Year ended ended ended
December 31, December 31, December 31, December 31,
2007 2006 2007 2006
(Unaudited) (Audited) (Unaudited) (Unaudited)
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Advertising
revenue $ 143,646 $ 149,696 $ 90,585 $ 8,850
Gaming revenue 2,226,099 2,393,765 1,045,259 94,780
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Total Revenue 2,369,745 2,543,461 1,135,844 103,630

Cost of
producing
revenue 1,404,851 842,724 783,883 37,072
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Gross profit 964,894 1,700,737 351,961 66,558
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Operating
expenses:
Depreciation
and
amortization 61,892 62,003 16,887 18,054
General and
administrative 448,646 423,176 109,174 100,736
Provision for
doubtful debts (107,486) 206,241 (107,486) 206,241
Salaries, wages,
consultants and
benefits 868,120 667,122 260,392 147,419
Selling and
marketing 1,239,676 895,838 302,066 112,368
Stock-based
compensation 122,068 113,450 31,807 30,172
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Total operating
expenses 2,632,916 2,367,830 612,840 614,990
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Loss before
other income
(expense) and
taxes (1,668,022) (667,093) (260,879) (548,432)

Other income
(expense):
Foreign exchange
losses (19,011) (7,334) (9,858) (5,168)
Gain on
resolution
of debt 101,509 158,574 60,417 32,697
Loss on
disposal of
equipment - (6,107) - (2,603)
Net Interest
income 22,083 17,171 5,103 3,572
Other income 11,098 10,953 1,955 3,207
Profit from
sale of US
cash bingo
business 120,000 180,000 30,000 180,000
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Loss before
income taxes (1,432,343) (313,836) (173,262) (336,727)

Income tax
expense - - - -
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Net loss $ (1,432,343) $ (313,836) $ (173,262) $ (336,727)
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Net loss per
common share,
basic and
diluted $ (0.04) $ (0.01) $ (0.01) $ (0.01)
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Weighted
average
common shares
outstanding,
basic 32,784,405 27,275,700 33,982,103 27,640,553
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BINGO.COM, LTD.
Consolidated Statements of Stockholders' Equity
For the year ended December 31, 2007
(Unaudited)

Accumu-
lated
Other
Comprehen-
sive
loss
Common stock ---------
Foreign
currency
transl- Total
Subscrip- Accumu- ation Stock-
tion lated adjust- holders'
Shares Amount shares (Deficit) ment Equity
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Balance,
December
31,
2005 26,775,903 $11,284,281 22,600 $ (9,360,584) $24,580 $1,970,877

Issuance
of shares
subscrip-
tion
shares 252,000 22,600 (22,600) - - -

Exercise
of stock
options 612,650 147,446 - - - 147,446

Stock-based
compensation - 113,450 - - - 113,450

Issuance of
consultant
stock
options - 7,074 - - - 7,074

Net loss - - - (313,836) - (313,836)
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Balance,
December
31,
2006 27,640,553 $11,574,851 $ - $(9,674,420) $24,580 $1,925,011

Private
placement 6,000,000 1,500,000 - - - 1,500,000

Exercise
of stock
options 385,150 27,583 - - - 27,583

Stock-based
compensation - 122,067 - - - 122,067

Issuance of
consultant
stock
options - 11,319 - - - 11,319

Net loss - - - (1,432,343) - (1,432,343)
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Balance,
December
31,
2007 34,025,70 $13,235,820 $(11,106,763 $24,580 2,153,637
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BINGO.COM, LTD.
Consolidated Statements of Cash Flows
For year Ended December 31, 2007 and 2006

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2007 2006
Years ended December 31, (Unaudited) (Audited)
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Cash flows from operating activities:
Net loss $ (1,432,343) $ (313,836)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 61,892 62,003
Gain on settlement of debt (101,509) (158,574)
Loss on disposal of equipment - 6,107
Stock-based compensation 122,068 113,450
Issuance of consultant stock option 11,319 7,074
Provision for doubtful accounts - 206,241
Profit from the sale of US players and related
assets (120,000) (180,000)
Changes in operating assets and liabilities:
Accounts receivable 75,690 (258,577)
Prepaid expenses 45,411 (66,824)
Inventory - 559
Other assets (80,591) (12,977)
Accounts payable and accrued liabilities (79,863) (31,427)
Unearned revenue 100,486 (135,252)
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Net cash used in operating activities (1,397,440) (762,033)

Cash flows from investing activities:
Acquisition of equipment (25,405) (115,859)
Proceeds from sale of US players and related
assets 120,000 180,000
Proceeds on disposal of equipment 112 8,507
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Net cash provided by investing activities 94,707 72,648

Cash flows from financing activities:
Exercise of stock options 27,583 147,446
Private placement 1,500,000 -
Repayment of loans and notes payable (1,457) (7,946)
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Net cash provided by financing activities 1,526,126 139,500

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Change in cash 223,393 (549,885)

Cash, beginning of year 521,203 1,071,088
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Cash, end of year $ 744,596 $ 521,203
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Supplementary information:
Interest paid $ - $ -
Income taxes paid $ - $ -
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