Friday February 20,2015 : SOCIAL GAMING FIRM RELEASES Q4-2014 RESULTS
Former Bingo.com owner now titled Shoal Games…but the losses persist.
Former Bingo.com owner, and now social and mobile gaming-focused Shoal Games released its Q4-2014 results this week, revealing new details on the disposal of Bingo.com to Unibet.
CEO Jason Williams said: "We successfully divested the company of the domain name www.bingo.com and the associated online gambling business in exchange for $2,000,000 cash and the return of 15,000,000 of Shoal Games' common shares which have since been cancelled.”
The total value of the sale was $8 million.
"This transaction allowed us to successfully exit the online gambling industry which we believe to be mature and facing increasing threats from taxation, regulation, and competition."
Williams revealed that the company's social game Trophy Bingo is currently live in the Apple App Store and Google Play Store, but revenues have been slow despite strong "performance metrics." The next version of the game is currently in development and is scheduled for release in H2-2015, supported by a major marketing push.
Williams claims that Trophy Bingo's player retention figures are among the best in the business, with high free player to premium player conversion and average revenue per daily active user performance improving.
Other features of the performance report included:
* Total revenue from continuing operations increased 23 percent y-o-y to $32,470 for the year ended
December 31, 2014;
* Revenue from Trophy Bingo increased to almost ten fold from a low base to $9,815 for the year ended December 31, 2014 ($1,265 for the same period in the prior year.)
* Advertising Revenue declined 10 percent to $22,655 for the year ended December 31, 2014;
* Sales and marketing expenses from continuing operations were $247,258 for the year, an increase of 25 percent y-o-y due to a rise in test marketing expenses for the soft launch of Trophy Bingo in the Google play and iOS stores.
* Net loss after taxation from continuing operations for the twelve months ended December 31, 2014, amounted to $2,736,544, a loss of ($0.04) per share, compared to a net loss from continuing operations of $755,182 or ($0.01) per share in the twelve months ending December 31, 2013.
* Gaming revenue from discontinued operations decreased 12 percent y-o-y to $1,684,047 as player activity fell off.
* Sales and marketing expenses from discontinued operations were $628,029 for the year ended December 31, 2014, a decrease of 68 percent over expenses of $1,944,982 for the year ended December 31, 2013 as marketing campaigns were reduced.
* Net income after taxation for the twelve months ended December 31, 2014, amounted to $5,062,233, compared to a net loss of ($787,863) in the twelve months ending December 31, 2013.
* The company had cash of $2,876,386 and working capital of $2,856,230 at December 31, 2014.