Bingo.com, Ltd.
OTC Bulletin Board : BNGOF

Bingo.com, Ltd.

November 10, 2010 17:17 ET

Bingo.com Announces Third Quarter Results

ANGUILLA, BRITISH WEST INDIES--(Marketwire - Nov. 10, 2010) - Bingo.com, Ltd. (OTCBB:BNGOF), owner of the popular online gaming community http://www.bingo.com, today announced its unaudited financial results for the third quarter ended September 30, 2010. All amounts are presented in United States dollars and in accordance with United States Generally Accepted Accounting Principles.

Highlights from the third quarter include:

  • Net loss of $245,507 in the third quarter of 2010 compared to net loss of $390,432 in the third quarter of the prior year.
  • Acquired the remaining 4% Domain Name payments for $900,000, payable in 6,000,000 common shares of Bingo.com, Ltd., issued at the rate of $0.15 per share.
  • Reduced general and administrative expenses, particularly the development of the Bingo.com website, as a result of the migration to the Unibet partner program.

"The third quarter of 2010 was one of transition for Bingo.com," said Tarrnie Williams, the Company's CEO. "The first phase of our revised business plan is now underway. Our costs have declined, our net loss has been reduced, and the purchase of the remaining 4% domain name payments for the Bingo.com URL has been completed. The second phase of our plan has also begun as we are preparing a new Bingo.com marketing campaign and working with Unibet to perfect the online bingo offering. The third and final phase of our plan will start in the first quarter of 2011 when we launch our media plan in markets targeted to provide Bingo.com with the best return on investment and the highest likelihood of helping the Company return to profitability."

Total revenue, less commissions, decreased to $97,509 for the quarter ended September 30, 2010, a decrease of 93% from revenue of $1,436,296 for third quarter of 2009 and a decrease of 72% from revenue of $353,619 in the second quarter of 2010. Gaming Revenue, less commissions, decreased to $82,745, a decreased of 94% in the quarter ended September 30, 2010, compared Gaming Revenue of $1,383,534 in the third quarter of 2009 and a 75% decrease from revenue of $333,115 in the second quarter of 2010. During the quarter ended June 30, 2010, Bingo.com migrated its players onto the Unibet partner program. The decrease compared to the third quarter of 2009 and the second quarter of 2010, is due to a decrease in cash game play, especially as a result of a second platform change within six months. Bingo.com earned advertising revenue of $14,764 in the quarter ended September 30, 2010, a decrease of 72% from advertising revenue of $52,762 in the third quarter of 2009 and a decrease of 28% 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, depreciation and amortization expenses, including sales and marketing and general and administrative expenses decreased to $317,386 in the third quarter of 2010, a decrease of 63% over operating expenses of $864,959 in the third quarter of 2009 and a decrease of 40% over operating costs of $531,339 in the second quarter of 2010. The decrease in operating expenses compared to the third quarter of 2009 and the second quarter of 2010, is due a decrease in sales and marketing expenses, particularly marketing bonuses granted to players, as a result of migrating to the Unibet partner program where significantly lower bonuses are granted to players.

Sales and marketing expenses decreased by 91% to $39,309 for the quarter ended September 30, 2010, compared to sales and marketing expenses of $427,311 in the third quarter of 2010 and an increase of 17% from expenses of $33,630 in the second quarter of 2010. Sales and marketing expenses principally include costs for signup bonuses, marketing, prizes for our players and other bonuses and incentives offered to gaming players. The decrease in sales and marketing expenses for the quarter ended September 30, 2010, compared to the third quarter of 2009, is primarily due to migration to the Unibet partner program where significantly lower marketing bonus are granted to players.

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 decreased to $70,486 for the third quarter of 2010, a decrease of 44% from costs of $126,784 for the third quarter of 2009 and a decrease of 19% from costs of $87,130 in the second quarter of 2010. The decrease in general and administrative expenses for the quarter ended September 30, 2010, compared to the third quarter of 2009 and the second quarter of 2010, is due to migration to the Unibet partner program whereby we have reduced many of our costs, especially the development of the Bingo.com website.

Net loss for the three months ended September 30, 2010, amounted to $245,507, a loss of $0.00 per share, a decrease in net loss of 37% compared to a net loss of $390,432, a loss of $0.01 per share for the same period in 2009 and an increase in net loss compared to a net loss of $27,977or $0.00 per share in the second quarter of 2010. The decrease in net loss for the quarter ended September 30, 2010, compared to the third quarter of 2009, is due to the reduction in expenses as a result of migrating to the Unibet partner platform. The increase in net loss compared to the second quarter of 2010 is due to the reversal of the progressive jackpot provision and the profit from the sale of the subsidiaries Bingo.com Services Limited and Bingo.com Operations Limited in the second quarter of 2010.

We had cash of $1,935,764 and a working capital of $1,975,643 at September 30, 2010. This compares to cash of $557,251 and a negative working capital of $19,801 at December 31, 2009.

During the quarter ended September 30, 2010, the Company engaged an independent valuation company, Evans & Evans, Inc. to value the remaining 4% Domain Name Purchase payments, for the option of acquiring the 4% Domain Name Purchase payments. Evans & Evans Inc. concluded the valuation of the 4% Domain Name purchase payments is between $1.4 and $1.6 million. During the quarter ended September 30, 2010, the Company purchased the remaining Domain Name payments for $900,000, payable in 6,000,000 common shares of Bingo.com, Ltd., issued at the rate of $0.15 per share.

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 1,990,000 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 31, 2010, 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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