Bingo.com Reports Twefth Consecutive Quarterly Loss

Bingo.com Limited, operator of popular online gaming site Bingo.com, has released its unaudited financial results for the previous three months showing a twelfth consecutive quarter of loss due to increased marketing costs.

The Anguilla-based firm revealed a net loss for the second quarter of $266,702, which was an increase of 13 percent year-on-year and nine percent higher than the first three months of 2009.

Bingo.com stated that this increase was down to increased marketing costs ‘incurred to enable us to compete in the increasily competitive United Kingdom market’.

“The company has made a provision for the progressive jackpots on its slots games and for players float,” read a statement from Bingo.com.

“We had cash of $848,749 and working capital of $752,304 before the provision for jackpots and players float of $340,317 at June 30, 2009. This compares to cash of $412,002 and working capital of $336,316 before the provision for jackpots and players float of $211,821 at December 31, 2008.”

On the bright side, revenues from gaming for the second quarter came in at £957,040, which was up by 41 percent year-on-year and seven percent higher than the previous three months.

In addition, the firm recently completed a private placement of 1.5 million shares that brought in $225,000 while total revenues increased seven percent year-on-year and 14 percent quarter-on-quarter to $1.51 million.

“The second quarter of 2009 was a challenge for Bingo.com” said Tarrnie Williams, Chief Executive Officer for Bingo.com.

“While our traffic and revenues continue to increase, the competition in the United Kingdom online bingo market is intense and has resulted in a reduction of individual player values. Our costs have increased due to our Maltese gaming license, affiliate marketing costs and our continued investment into search engine optimisation.

“We recognise that to capture a higher percentage of the online bingo market share and reach profitability we need to offer our players a unique gaming experience. As we put cost saving measures in place and continue to focus on improving the Bingo.com system, we believe we will achieve profitability in the coming quarters.”