Bingo.com, Ltd.
OTCQB : BNGOF

Bingo.com, Ltd.

August 13, 2012 10:57 ET

Bingo.com Announces Second Quarter Results

ANGUILLA, BRITISH WEST INDIES--(Marketwire - Aug. 13, 2012) - Bingo.com, Ltd. (OTCQB: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, 2012. All amounts are presented in United States dollars and in accordance with United States Generally Accepted Accounting Principles.

Recent Bingo.com highlights include:

  • A profit from continuing operations before foreign exchange of $47 compared to a loss from continuing operations of ($65,061) in the first quarter of 2012;
  • Total revenue for the quarter ended June 30, 2012, was $347,743, a decrease of 4% from revenue of $363,492 for second quarter of 2011;
  • Net loss for the three months ended June 30, 2012, amounted to $28,908, an increase over a net loss of $24,930 in the first quarter of 2012;

"The second quarter of 2012 was challenging for Bingo.com as despite increased gaming activity across many products, our revenues declined," commented Jason Williams, Bingo.com's CEO. "Our strategy with the second quarter was to reduce our marketing costs and focus on player development and retention, which was successful. While we achieved our objective of improving our total operating margin, low gross margins in our casino products late in the quarter and a negative impact from currency fluctuations combined to give us a net loss for the quarter. However, our task is to post an annual net profit for Bingo.com and with the third quarter off to a strong start we believe that milestone will still be reached."

Total revenue for the quarter ended June 30, 2012, was $347,742, a decrease of 4% from revenue of $363,492 for second quarter of 2011 and a decrease of 14% from revenue of $406,307, in the first quarter of 2012. Gaming Revenue was $339,869, a decrease of 4% in the quarter ended June 30, 2012, compared Gaming Revenue of $352,413 in the second quarter of 2011 and a 12% decrease from revenue of $386,925 in the first quarter of 2012. This decrease compared to the second quarter of 2011 and the first quarter of fiscal 2012 is due to unfavourable gaming results late in the quarter. We earned advertising revenue of $7,873 in the quarter ended June 30, 2012, a decrease of 29% from advertising revenue of $11,079 in the second quarter of 2011 and a decrease of 59% from advertising revenue of $19,382 in the first quarter of 2012.

Operating costs before interest, and depreciation expenses, including sales and marketing and general and administrative expenses decreased to $375,748 in the second quarter of 2012, an increase of 6% over operating expenses of $353,204 in the second quarter of 2011 and a decrease of 13% over operating costs of $429,997 in the first quarter of 2012. The increase in operating expenses compared to the second quarter of 2011, is due to the fluctuations of exchange rates. The decrease in operating expenses compared to the first quarter of 2012 is due a decrease in marketing expenses.

Sales and marketing expenses decreased to $188,411 for the quarter ended June 30, 2012, an increase of 17% over marketing expenses of $161,142 in the second quarter of 2011 and a decrease of 37% from marketing expenses of $298,339 in the first quarter of 2012. 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 increase in sales and marketing expenses for the quarter ended June 30, 2012, compared to the second quarter of 2011 is due to a larger media budget in the second quarter of fiscal 2012. The decrease in sales and marketing expenses for the quarter ended June 30, 2012, compared to the first quarter of 2012, is due to a reduction in marketing efforts during the quarter ended June 30, 2012.

Net loss for the three months ended June 30, 2011, amounted to $28,908, a loss of ($0.00) per share, an increase in net loss compared to a net gain of $8,520, a profit of $0.00 per share for the same period in 2011 and compared to a net loss of $24,930 or loss of $0.00 per share in the first quarter of 2012.

We had cash of $745,478 and positive working capital of $1,006,992 at June 30, 2012. This compares to cash of $787,524 and positive working capital of $1,058,631 at December 31, 2011.

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.

About 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.poweredbyunibet.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.

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