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Bingo.com Doubles Revenue
Tuesday May 15, 2012 : HAS BINGO.COM TURNED THE CORNER?
More than doubles revenue and narrows loss
Bingo.com has reported another set of upbeat financial results in its Q1/2012 report.
Despite posting a net loss, which it attributes to increased investments in marketing, the company posted a 64 percent rise in revenue compared to the same period last year, progressively moving towards a return to profitability.
The company's swing in fortunes started after it became a member of the Unibet partner program, boosting its international player acquisitions and revenues. In May 2010, Unibet bought a 25.9 percent stake in Bingo.com for $2.25 million .
Key performance indicators for the Q1/2012 period ending March 31, 2012 include:
- Total revenue of $406 307, an increase of 64 percent (Q1/2011: $247 044)
- Gaming revenue of $231 177, up 5 percent over the same period last year
- 22 percent rise in advertising revenue amounting to $19 382
- Net loss amounting to $24 930, indicating a decrease in net loss of 97 percent (Q1/2011: $743 332)
- Cash of $673 999 and positive working capital of $1 034 388
Key operational highlights:
- Delivery of an extensive marketing program in target jurisdictions;
- Launch of Deal or No Deal Bingo and Lucky Numbers Bingo to Bingo.com's game portfolio;
"The first quarter of 2012 saw increased investments into our marketing programs and a resulting increase in revenue," commented Jason Williams, Bingo.com's chief executive officer.
"While it's unfortunate to post a net loss for the quarter, our strategy was to make significant investments in marketing and I'm pleased that the loss is small. Our marketing campaigns continue to be effective and our brand well received in our target jurisdictions.
“In the second quarter we intend to focus on player retention and with a smaller marketing investment planned, we anticipate a return to profitability."
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