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Losses Continue at Bingo.com

Friday May 17,2013 : REVENUES UP, BUT LOSSES CONTINUE AT BINGO.COM
 
Marketing expenses soak up the money
 
Online bingo operator Bingo.com Limited has posted a set of unaudited Q1-2013 financial results showcasing a creditable 45 percent rise in y-o-y revenues to $590,199, but a net loss of $471,189, mainly due to increased marketing spend.
 
Comparing the first quarter 2013 with the last quarter of 2012, revenues are up 7 percent and the player base has grown, Management reports.
 
CEO Jason Williams says the first quarter this year has gone according to plan.
 
“Our aggressive marketing efforts have increased Bingo.com's European player base and gaming volumes to record levels for the company,” he claimed. “While it's disappointing to have a loss, we had anticipated our increased marketing spend would put us in the red for the short-term,” Williams added.
 
“However, our marketing continues to be well received and our player acquisition costs are within targets. The second quarter will see a reduced marketing spend as we consolidate our position and focus on the monetization of our now significantly larger player base.”
 
First-quarter sales and marketing expenses grew by 191 percent year-on-year to $868,789, and the company held $550,997 in cash as of March 31 2013, with positive working capital of $920,435.
 
“Bingo.com has returned to the North American market with its entry into the social casino segment with Trophy Bingo,” said Williams.
 
“With the game entering its beta testing phase, we are enthusiastic about our innovative product and its potential in the global online bingo industry.”



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