Thursday October 31,2013 : BINGO.COM REPORTS NET LOSS IN QUARTERLY REPORT
Platform migration and a competitive market have negative impact
Bingo.com, Ltd has presented its unaudited results for the first nine months ending September 30, 2013 showing an increase in total revenue of 26 percent. Revenue for the third quarter, however, showed a 1 percent decline compared to the same period last year.
Key Highlights for the period include:
– Total revenue of $1,534,211, up 26 percent compared to the 9M/2012 period last year.
– Total revenue for the quarter ended September 30, 2013 was $452,753 (Q3/2012: $457,748), down 1 percent
– Gaming revenue for the quarter ended September 30, 2013 was $446,022 (Q3/2012: $445,237)
– Operating costs before interest, and depreciation expenses, including sales and marketing and general and administrative expenses increased to $548,871 (Q3/2012: $427,773)
– Sales and marketing expenses were $462,974 (Q3/2012: $310,712), up 49 percent
– Net loss for the three months ended September 30, 2013, amounted to ($96,956)
– As of September 30, 2013, cash of $586,273 and positive working capital of $1,071,464
Describing the third quarter as challenging, chief executive officer Jason Williams said latent effects of bingo.com's platform migration, an increasingly competitive market environment and the lack of a mobile product impacted negatively on results.
A mobile and tablet solution is currently in the pipeline and the company's social casino product Trophy Bingo, currently in the late stages of development following successful beta testing, is expected to launch during the fourth quarter of 2013.
"We remain confident in the potential of both our European online gambling operation and our social casino product. For the fourth quarter we have configured our gambling promotions and allocated our marketing budgets to return to revenue growth," Williams said.