Bingo.com 80 Percent Revenue Drop

Written On 5/19/11 :

80 percent decline in revenues
 
The veteran online bingo operator Bingo.com continues to struggle according to first quarter 2011 results published by the firm this week showing an 80 percent year-on-year decline in revenues to $247 044.
 
Management cited the underlying causes of the decline as high marketing costs and an extensive restructuring, but claimed that revenues for the first three months of 2011 had risen 123 percent when compared to Q4 of 2010.
 
Looking on the brighter side, management noted that there had been a 95 percent quarter-on-quarter rise in the number of monthly active players, with revenues from gaming up by 148 percent when compared to the previous three-month period to $93,128, although this figure still represents an 81 percent year-on-year decline.
 
“The first quarter of 2011 marked two milestones with the launch of our new marketing initiatives and the completion of our restructuring efforts,” said CEO Tarrnie Williams.
 
“I'm pleased to see our increased revenues and an increase in the total monthly active players, although the results have come at a significant cost. We invested heavily into marketing placements in the first quarter and the response from our target market has been extremely positive.
 
“However, given the large size of our investment, we believe it will take many months before the full benefits of the campaign are realised and returns secured. We continue to support the marketing in target jurisdictions with lower intensity.
 
“Bingo.com has recorded a significant loss in the first quarter of 2011. This is primarily a result of the high marketing costs and large one-time charges stemming from our restructuring efforts, which are now complete.
 
"The remaining future costs of Bingo.com are now focused on the marketing function of the organisation as we invest to generate increasing amounts of targeted traffic to build a large base of valuable customers.”