Bingo.com, Ltd.
OTCQB : BNGOF

Bingo.com, Ltd.

November 12, 2014 19:43 ET

Bingo.com Announces Third Quarter Results

ANGUILLA, BRITISH WEST INDIES--(Marketwired - Nov. 12, 2014) - Bingo.com, Ltd. (OTCQB:BNGOF), owner of Trophy Bingo, an innovative, non-gambling, social bingo product, and the online gaming community http://www.bingo.com, today announced its unaudited financial results for the third quarter ended September 30, 2014. All amounts are presented in United States dollars and in accordance with United States Generally Accepted Accounting Principles.

Recent Bingo.com highlights include:

  • Worldwide launch of Trophy Bingo in the Google Play Store and Apple App Store.
  • Launch of Bingo.com's mobile casino games for players on phones and tablets.
  • $700,000 private placement financing at $0.70 per share.
  • Total revenue for the quarter ended September 30, 2014, was $385,601, a decrease of 11% from revenue of $431,185 in the second quarter of 2014.
  • Sales and marketing expenses were $180,319 for the quarter ended September 30, 2014, a decrease of 12% from expenses of $205,825 in the second quarter of 2014.

"The third quarter of 2014 saw inroads into our mobile strategy in both of our business segments," said Jason Williams, Bingo.com's CEO. "In our European gambling business, our technology supplier delivered us with a mobile casino system which is now live in eligible countries for all visitors who come to www.bingo.com on phones or tablets. We intend on focusing our marketing efforts in the fourth quarter on growing our mobile customer base."

"In our social bingo business, the third quarter saw Trophy Bingo's launch in the Google Play Store for Android devices worldwide. Since the close of the third quarter, Trophy Bingo has also launched in the Apple App Store and the game remains in a period of live development and tuning as we prepare for large scale marketing efforts once our performance metrics reach our target levels. We anticipate increased revenues from Trophy Bingo each month with the major global campaigns commencing in early 2015."

Net loss for the three months ended September 30, 2014, amounted to ($458,910), a loss of ($0.01) per share, an increase in net loss compared to a net loss of ($350,351) or loss of ($0.01) per share in the second quarter of 2014 and an increase in net loss compared to net loss of ($96,956), income of ($0.01) per share, for the same period in 2013. Net income for the third quarter of 2014 before amortization of Trophy Bingo and the Trophy Bingo development expenses was $4,098, compared to a net income of $51,282 before amortization of Trophy Bingo and the Trophy Bingo development expenses in the second quarter of 2014.

We had cash of $1,355,229 and positive working capital of $1,254,527 at September 30, 2014. This compares to cash of $491,203 and positive working capital of $646,015 at December 31, 2013.

Total revenue for the quarter ended September 30, 2014, was $385,601, a decrease of 15% from revenue of $452,753 for third quarter of 2013 and a decrease of 11% from revenue of $431,185, in the second quarter of 2014. Gaming Revenue was $379,458, a decrease of 15% in the quarter ended September 30, 2014, compared Gaming Revenue of $446,022 in the third quarter of 2013 and an 11% decrease from revenue of $426,920 in the second quarter of 2014. This decrease compared to the third quarter of 2013 and the second quarter of 2014, is due to a decrease in players. We earned advertising revenue of $6,143 in the quarter ended September 30, 2014, a decrease of 9% from advertising revenue of $6,731 in the third quarter of 2013 and an increase of 44% from advertising revenue of $4,265 in the second quarter of 2014.

Operating costs before interest, depreciation and amortization expenses, including sales and marketing and general and administrative expenses was $723,180 in the third quarter of 2014, an increase of 10% over operating expenses of $660,265 in the second quarter of 2014 and an increase of 32% over operating expenses of $548,871 in the third quarter of 2013. The increase in operating expenses, compared to the second quarter of 2014, is due to increase in Trophy Bingo development expenses. The increase in operating expenses compared to the third quarter of 2013 is due to the Company ceasing to capitalize the development of Trophy Bingo and commenced expensing the current development costs in 2014.

Sales and marketing expenses were $180,319 for the quarter ended September 30, 2014, a decrease of 61% over expenses of $462,974 in the third quarter of 2013 and a decrease of 12% from expenses of $205,825 in the second quarter of 2014. Sales and marketing expenses principally include costs for television marketing, Search Engine Optimization expenses, 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, 2014, compared to the third quarter of 2013 and the second quarter of 2014 is due to a larger media budget in the third quarter of 2013 and second quarter of 2014 to drive additional players to the website.

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 corporate website at http://www.corporate.bingo.com.

About Bingo.com

Bingo.com, Ltd. (OTCQB:BNGOF) is the parent company of the Bingo.com group of companies, which owns http://www.bingo.com, the popular online gaming community, and Trophy Bingo, an innovative, non-gambling social bingo game, live in the Google Play Store and the Apple App Store. 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.unibet.com). Trophy Bingo is a puppy themed bingo adventure where players must win their way through 120 levels of bingo challenges. The game is free to download and supports in-app purchases for players who find themselves in need of extra bingos or want to engage with the premium power plays contained in the game. Bingo.com, Ltd. (OTCQB:BNGOF) trades on the OTCQB, the venture marketplace for companies that are current in their reporting with the 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, filed with the SEC on March 25, 2014, 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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