Bingo.com, Ltd.
OTC Bulletin Board : BNGOF

Bingo.com, Ltd.

August 15, 2011 11:29 ET

Bingo.com Announces Profitable Second Quarter

ANGUILLA, BRITISH WEST INDIES--(Marketwire - Aug. 15, 2011) - Bingo.com, Ltd. (OTCBB:BNGOF), owner of the popular online gaming community http://www.bingo.com, today announced its unaudited financial results for the second quarter ended June 30, 2011. All amounts are presented in United States dollars and in accordance with United States Generally Accepted Accounting Principles.

Recent Bingo.com highlights included:

  • First profitable quarter since the second quarter of 2006.
  • Net income for the three months ended June 30, 2011 was $8,520 compared to a net loss of $743,332 in the first quarter of 2011.
  • Revenue of $363,492, an increase of 47% from revenue of $247,044 in the first quarter of 2011.

"Bingo.com has returned to profitability in the second quarter of 2011", said Jason Williams, Bingo.com's CEO. "In the first quarter of 2011, we completed the restructuring of Bingo.com's strategy, technology, and personnel and are pleased to see the positive results that have been achieved. As a member of the Unibet partner program, Bingo.com's international player acquisitions and revenues have greatly improved. The combination of a multi-language and multi-currency approach with a wide selection of premium bingo and casino games has resulted in high player values from a number of countries. With the launch of Bingo.com's marketing initiatives in January 2011 and the rise of our active player base, Bingo.com's revenues have climbed steadily. Now with higher revenues and lower operating costs, Bingo.com has been able to secure its first profitable quarter since the second quarter of 2006. Moving forward, Bingo.com will continue to invest in targeted marketing initiatives with the intention of growing revenues and profits."

Total revenue for the quarter ended June 30, 2011, was $363,492, an increase of 47% from revenue of $247,044 in the first quarter of 2011, and an increase of 3% from revenue of $353,619 for second quarter of 2010. Gaming Revenue was $352,413 in the quarter ended June 30, 2011, an increase of 52% from revenue of $231,177 in the first quarter of 2011, and an increase of 6%, compared to Gaming Revenue of $333,115 in the second quarter of 2010. This increase compared to the first quarter of 2011 and the second quarter of fiscal 2010 is due to a targeted television marketing campaign. We earned advertising revenue of $11,079 in the quarter ended June 30, 2011, a decrease of 30% from advertising revenue of $15,867 in the first quarter of 2011 and a decrease of 46% from advertising revenue of $20,504 in the second quarter of 2010. During the quarter ended March 31, 2010 the Company suspended sales of new advertising.

Operating costs before interest, and depreciation expenses, including sales and marketing and general and administrative expenses were $354,947 in the second quarter of 2011, a decrease over operating costs of $987,749 in the first quarter of 2011 and a decrease over operating expenses of $425,892 in the second quarter of 2010. The decrease in operating expenses compared to the first quarter of 2011 and the second quarter of 2010, is the result of a significant reduction in operating costs, especially the reduction in the number of staff and the targeted television marketing campaign in the first quarter of 2011.

Sales and marketing expenses were $161,142 for the quarter ended June 30, 2011, a decrease from expenses of $496,679 in the first quarter of 2011 and an increase over expenses of $33,630 in the second quarter of 2010. Sales and marketing expenses principally include costs for Bingo.com marketing campaigns, signup bonuses, search engine optimization, prizes for our players and other bonuses and incentives offered to gaming players. The increase in sales and marketing expenses for the quarter ended June 30, 2011, compared to the second quarter of 2010 is due to continued marketing efforts in target jurisdictions. The active television marketing campaigns launched in the first quarter of fiscal 2011 were continued on a reduced, more focused scale in the second quarter of 2011.

General and administrative expenses consist primarily of premises costs for our office, legal and professional fees, and other general corporate and office expenses. General and administrative expenses were $83,754 for the second quarter of 2011, an increase of 11% from costs of $75,430 in the first quarter of 2011 and a decrease of 4% from costs of $87,130 for the second quarter of 2010. The increase in general and administrative expenses compared to the first quarter of fiscal 2011, is due to the expenses incurred in holding the 2011 Annual General Meeting. General and administrative expenses have decreased in comparison to the prior year due to the migration to the Unibet's Partner Program whereby we have reduced many of our costs, especially the development of the bingo.com website.

Net income for the three months ended June 30, 2011, amounted to $8,520, an income of $0.00 per share, as opposed to a net loss of $743,332 or $0.01 per share in the first quarter of 2011 and as opposed to a net loss of $27,977, a loss of $0.00 per share for the same period in 2010. The switch to a profit for the quarter ended June 30, 2011, compared to net losses in the first quarter of 2011 and the second quarter of 2010 is due to the increase in revenue as a result of the television marketing and a reduction in operating costs.

We had cash of $886,428 and positive working capital of $1,002,277 at June 30, 2011. This compares to cash of $1,396,384 and positive working capital of $1,723,394 at December 31, 2010.

For full details of the Company's 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.

About Bingo.com

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. With over 1,997,500 registered users http://www.bingo.com 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 21, 2011, 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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