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Bingo.com has posted a disappointing set of Q2-2012 results
Wednesday August 15, 2012 : BINGO.COM RESULTS DISAPPOINT
First quarter revenue increase has not been maintained
Online bingo operator Bingo.com has posted a disappointing set of Q2-2012 results showing a decline from Q1's 64 percent rise in revenues to a 4 percent decline.
The Anguilla-based firm reported a net deficit for the quarter to June 30 2012 up by almost $4,000 quarter-on-quarter to reach $28,908.
Total revenues for Q2-2012 slipped 14 percent quarter-on-quarter, with income from gaming operations falling 12 percent quarter-on-quarter to $339,869.
“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,” Management reported.
“We earned advertising revenues of $7,873 in the quarter ended June 30, 2012, a decrease of 29 percent from advertising revenue of $11,079 in the second quarter of 2011 and a decrease of 59 percent from advertising revenue of $19,382 in the first quarter of 2012.”
“Despite increased gaming activity across many products, our revenues declined,” said chief executive officer Jason Williams.
“Our strategy in 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.”
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