Bingo.com Announces Year End & Fourth Quarter Results
March 24, 2010 6:00 AM ET
Bingo.com, Ltd. (OTCBB: BNGOF), operator of the popular online
gaming community http://www.bingo.com, today announced
its unaudited financial results for the fourth quarter ended
December 31, 2009. All amounts are presented in United States
dollars and in accordance with United States Generally Accepted
Accounting Principles.
Bingo.com financial highlights for the year ended 2009 and of
the fourth quarter of 2009 included:
- Total revenue for the year ended December 31, 2009 of
$5,825,362, an increase of 3% from revenue of $5,649,565 in the
year ended December 31, 2008.
- Total gaming revenue for the year ended December 31, 2009, of
$5,629,529, an increase of 5% from revenue of $5,373,718 in the
year ended December 31, 2008.
- When measured in Pounds Sterling, presently our depositing
currency, Total gaming revenue for the year ended December 31, 2009
of Pounds Sterling 3,635,229, an increase of 25% from gaming
revenue of Pounds Sterling 2,915,893 for the same period in the
prior year.
- Total loss after tax for the year ended December 31, 2009 of
$1,188,051 an increase of 3% compared to a loss of $1,156,787 for
the year ended December 31, 2008.
- Total revenue for the quarter ended December 31, 2009, was
$1,552,320, an increase of 17% from revenue of $1,329,273 for the
same period in the prior year and an increase of 8% from revenue of
$1,436,296 in the third quarter of 2009.
- Total loss for the quarter ended December 31, 2009, was
$286,943, an improvement of 26% from a loss of $390,282 for the
same period in the prior year and an improvement of 26% from a loss
of $390,432 in the third quarter of 2009.
"Last year saw strong player traffic and gaming activity on
Bingo.com," said Tarrnie Williams, the Company's CEO. "However, we
continued to be negatively affected by currency fluctuations,
particularly the fall in value of the United Kingdom Pound Sterling
relative to the United States Dollar."
"The cost of operating a full service gaming operation is
significant and, to combat this, we have chosen a new strategic
direction by partnering with Unibet. This change in strategy will
allow Bingo.com to significantly reduce its costs while
simultaneously increasing the reach of its product offering through
the introduction of multi-currency and multi-language features. We
have found that providing bingo in our players' language and
currency increases depositing and play. The Bingo.com URL continues
to draw high levels of traffic from many countries around the world
and, with the growth of online bingo, we believe we are now
well-positioned to become profitable."
Total revenue for the quarter ended December 31, 2009, was
$1,552,320, an increase of 17% from revenue of $1,329,273 for the
same period in the prior year and an increase of 8% from revenue of
$1,436,296 in the third quarter of 2009. Of the $1,552,320 revenue
for the quarter, the gaming operations provided revenue of
$1,501,114, an increase of 17% from gaming revenue of $1,287,808 in
the fourth quarter of 2008 and an increase of 8% from gaming
revenue of $1,383,534 in the third quarter of 2009. The increase
compared to the fourth quarter of 2008 and the third quarter of
2009, is due to an increase in the player base. The advertising
revenue for the quarter ended December 31, 2009, was $51,206, an
increase of 23% from advertising revenue of $41,465 in the fourth
quarter of 2008 and a decrease of 3% from advertising revenue of
$52,762 in the third quarter of 2009.
Cost of revenue was $1,051,699 during the fourth quarter of
2009, an increase of 15% compared to cost of revenue of $917,916 in
the fourth quarter of 2008 and an increase of 9% from cost of
revenue of $962,525 during the third quarter of 2009. Cost of
revenue consists of bonuses granted on deposits made by players,
the cost of hosting the website, payment processing fees in
relation to deposits from and withdrawals to our players, software
license fees, and the domain name purchase payments. The increase
compared to the fourth quarter of 2008, is due to the increase in
costs, especially bandwidth and gaming taxation in relation to our
Maltese operation. The increase compared to the third quarter of
2009, is due to an increase in revenue resulting in an increase of
deposit bonuses and payment processing fees.
Operating costs before interest, depreciation and amortization
expenses, including sales and marketing and general and
administrative expenses decreased to $779,273 in the fourth quarter
of 2009, a decrease of 4% over operating expenses of $809,977 in
the fourth quarter of 2008 and a decrease of 10% over operating
costs of $864,959 in the third quarter of 2009. The decrease in
operating expenses compared to the fourth quarter of 2008 and the
third quarter of 2009 is due to fluctuations in the foreign
currency market.
Sales and marketing expenses were $400,485 during the fourth
quarter of 2008, an increase of 24% over expenses of $323,905
during the fourth quarter of 2008 and a decrease of 6% over sales
and marketing expenses of $427,311 in the third quarter of 2009.
These costs include sign up bonuses and incentives, commissions,
advertising, and other promotional expenses intended to increase
our subscriber base and improve gaming revenue. The increase
compared to the fourth quarter of 2008, is primarily due to the
increase in marketing expenses, particularly search engine
optimisation costs incurred to ensure we continue to hold a top
ranking position in all the search engines. The decrease compared
to the third quarter of 2009, is due to a decrease in marketing
spend by the Company.
General and Administrative expenses consist of salaries,
premises costs for our office, legal and professional fees, and
other general corporate and office expenses. These expenses were
$398,901 for the fourth quarter of 2009, an increase from general
and administrative expenses of $397,035, in the fourth quarter of
2008 and a decrease of 4% from expenses of $416,147 for the third
quarter of 2009.
The Companies revenues are primarily received in Pounds Sterling
whereas the majority of its fixed expenses are in both Canadian and
United States Dollars. The large swings in the exchange rates of
these currencies have negatively affected our operations. The net
loss after taxation for the three months ended December 31, 2009,
amounted to $286,943, a loss of $0.01 per share, compared to a net
loss of $390,282 or $0.01 per share in the fourth quarter of 2008
and net loss of $390,432 or $0.01 per share in the third quarter of
2009. The decrease in net loss after taxation for the fourth
quarter 2009 compared to the fourth quarter of 2008 and the third
quarter of 2009 is due to an increase in revenue and currency
fluctuations of the Pound Sterling compared to the US Dollar, our
reporting currency.
The Company has made a provision for the progressive jackpots on
its slots games and for players float. We had cash of $557,251 and
working capital of $382,696 before the provision for jackpots and
players float of $402,496 at December 31, 2009. This compares to
cash of $412,002 and working capital of $336,316 before the
provision for jackpots and players float of $211,821 at December
31, 2008, and cash of $547,505 and working capital of $429,121
before the provision for jackpots and players float of $348,382 at
September 30, 2009.
For full details of the Companies operations and financial
results, please refer to the Securities and Exchange Commission
website at www.sec.gov or the
Bingo.com website at http://www.bingo.com.
About Bingo.com
Bingo.com, Ltd. (OTCBB: BNGOF) is the parent company of the
Bingo.com group of companies which operates the popular online
gaming community http://www.bingo.com. The Bingo.com
group offers multiplayer bingo, slot machines, sweepstakes, and
more. Players come together from around the world to chat, share,
play and win at Bingo.com. With over 1,975,000 registered users
http://www.bingo.com. is one of the most recognized and most
visited bingo entertainment destinations on the Internet.
The Private Securities Litigation Reform Act of 1995 provides a
"safe harbor" for forward-looking statements. Certain information
included in this press release (as well as information included in
oral statements or other written statements made or to be made by
the company) contains statements that are forward-looking, such as
statements relating to anticipated future success of the company.
Such forward-looking information involves important risks and
uncertainties that could significantly affect anticipated results
in the future and, accordingly, such results may differ materially
from those expressed in any forward-looking statements made by or
on behalf of the company. For a description of additional risks and
uncertainties, please refer to the company's filings with the
Securities and Exchange Commission. Specifically, readers should
read the Company's Annual Report on Form 10-K, filed with the SEC
on March 31, 2009, the Form 10-K/A, filed with the SEC on December
7, 2009, and the prospectus filed under Rule 424(b) of the
Securities Act on March 9, 2005 and the SB2 filed July 17, 2007,
for a more thorough discussion of the Company's financial position
and results of operations, together with a detailed discussion of
the risk factors involved in an investment in Bingo.com, Ltd.
BINGO.COM, LTD.
Unaudited Consolidated Balance Sheets
---------------------------------------------------------------------------
December 31, 2009 2008
---------------------------------------------------------------------------
Assets
Current assets:
Cash $ 557,251 $ 412,002
Accounts receivable, less allowance for doubtful
accounts
$774,550 (2008 - $837,050) 43,523 43,239
Prepaid expenses 72,770 123,650
---------------------------------------------------------------------------
Total Current Assets 673,544 578,891
Equipment, net 190,141 199,367
Other assets 148,552 122,335
Domain name rights and intangible assets 1,257,241 1,257,241
Deferred tax asset, less valuation
allowance of $151,853
(2008 - $278,421) - -
Total Assets $ 2,269,478 $ 2,157,834
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 89,419 $ 121,208
Accrued liabilities 132,112 99,031
Accounts payable and accrued liabilities
- related party 69,318 22,336
Provision for progressive jackpots 304,683 159,798
Players float 97,813 52,023
---------------------------------------------------------------------------
Total Current Liabilities 693,345 454,396
---------------------------------------------------------------------------
Stockholders' equity :
Common stock, no par value, unlimited
shares authorized,
41,517,703 shares issued and outstanding
(December 31, 2008 - 36,200,203) 14,799,154 13,942,408
Subscriptions received in advance 204,000 -
Accumulated deficit (13,451,601) (12,263,550)
Accumulated other comprehensive loss:
Foreign currency translation adjustment 24,580 24,580
---------------------------------------------------------------------------
Total Stockholders' Equity 1,576,133 1,703,438
---------------------------------------------------------------------------
Total Liabilities and Stockholders' Equity $ 2,269,478 $ 2,157,834
---------------------------------------------------------------------------
---------------------------------------------------------------------------
BINGO.COM, LTD.
Unaudited Consolidated Statements of Operations
For the periods ended December 31, 2009 and 2008
Three Months Three Months
Year ended Year ended ended ended
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
---------------------------------------------------------------------------
Advertising revenue $ 195,833 $ 275,847 $ 51,206 $ 41,465
Gaming revenue 5,629,529 5,373,718 1,501,144 1,287,808
---------------------------------------------------------------------------
Total revenue 5,825,362 5,649,565 1,552,320 1,329,273
Operating expenses:
Cost of producing
revenue 3,836,527 3,791,217 1,051,699 917,916
Depreciation and
amortization 73,122 58,134 20,733 15,790
Directors fees 6,000 - 1,500
General and
administrative 518,959 553,486 122,044 139,191
Salaries, wages,
consultants
and benefits 1,027,929 1,008,271 265,586 232,211
Selling and
marketing 1,617,542 1,291,032 400,485 323,905
Stock-based
compensation 63,677 86,544 11,271 25,633
---------------------------------------------------------------------------
Total operating expenses 7,143,756 6,788,684 1,873,318 1,654,646
---------------------------------------------------------------------------
Loss before other
income (expense)
and income taxes (1,318,394) (1,139,119) (320,998) (325,373)
Other income (expense):
Foreign exchange
gain (loss) 37,428 (158,133) 21,613 (89,038)
Gain on resolution of
debt 45,069 65,252 10,030 18,363
Loss on disposal of
equipment (1,240) (7,042) - (4,921)
Interest income 1,721 19,054 291 3,164
Other income 19 201 8 23
Profit from sale of
US players
and related assets 62,500 63,000 15,000 7,500
---------------------------------------------------------------------------
Loss before income taxes (1,172,897) (1,156,787) (274,056) (390,282)
Income tax expense (15,154) - (12,887) -
---------------------------------------------------------------------------
Net loss $(1,188,051) $(1,156,787) $ (286,943) $ (390,282)
---------------------------------------------------------------------------
Net loss per common
share, basic and
diluted $ (0.03) $ (0.03) $ (0.01) $ (0.01)
---------------------------------------------------------------------------
Weighted average
common shares
outstanding, basic
and diluted 40,494,148 35,092,369 41,517,703 36,200,203
---------------------------------------------------------------------------
BINGO.COM, LTD.
Unaudited Consolidated Statements of Stockholders' Equity
For the year ended December 31, 2009
(Unaudited)
---------------------------------------------------------------------------
Accum-
ulated
Other
Compre-
hensive
loss
--------
Foreign
currency
Common stock trans- Total
Subscrip- lation Stock-
tion Accumulated adjust- holders'
Shares Amount shares (Deficit) ment Equity
---------------------------------------------------------------------------
Balance,
December
31, 2007 34,025,703 $13,235,820 - $(11,106,763) $24,580 2,153,637
Private
place-
ment 2,000,000 600,000 - - - 600,000
Exercise
of stock
options 174,500 8,725 - - - 8,725
Stock-
based
compen-
sation - 86,544 - - - 86,544
Issuance
of consul-
tant stock
Options - 11,319 - - - 11,319
Net loss - - - (1,156,787) - (1,156,787)
---------------------------------------------------------------------------
Balance,
December
31, 2008 36,200,203 $13,942,408 - $(12,263,550) $24,580 1,703,438
Private
place-
ment 5,000,000 750,000 - - - 750,000
Exercise
of stock
options 317,500 31,750 - - - 31,750
Stock-
based
compen-
sation - 63,677 - - - 63,677
Subscrip-
tions
received
in
advance - - 204,000 - - 204,000
Issuance
of
consultant
stock
Options - 11,319 - - - 11,319
Net loss - - - (1,188,051) - (1,188,051)
---------------------------------------------------------------------------
Balance,
December
31, 2009 41,517,703 $14,799,154 $204,000 $(13,451,601) $24,580 1,576,133
---------------------------------------------------------------------------
BINGO.COM, LTD.
Unaudited Consolidated Statements of Cash Flows
For Year Ended December 31, 2009 and 2008
---------------------------------------------------------------------------
Years ended December 31, 2009 2008
---------------------------------------------------------------------------
Cash flows from operating activities:
Loss before income taxes $(1,188,051) $(1,156,787)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 73,122 58,133
Gain on settlement of debt (45,069) (65,252)
Loss on disposal of equipment 1,240 7,042
Stock-based compensation 63,677 86,544
Issuance of consultant stock option 11,319 11,319
Profit from the sale of US players and related
assets (62,500) (63,000)
Changes in operating assets and liabilities:
Accounts receivable (284) 99,947
Prepaid expenses 50,880 (197)
Other assets (26,217) (11,457)
Accounts payable and accrued liabilities 93,343 45,201
Provision for progressive jackpots 144,885 127,535
Players float 45,790 (16,200)
---------------------------------------------------------------------------
Net cash used in operating activities (837,865) (877,172)
Cash flows from investing activities:
Acquisition of equipment (65,550) (127,147)
Proceeds from sale of US players and
related assets 62,500 63,000
Proceeds on disposal of equipment 414 -
---------------------------------------------------------------------------
Net cash used in investing activities (2,636) (64,147)
Cash flows from financing activities:
Exercise of stock options 31,750 8,725
Private placement 750,000 600,000
Subscriptions received in advance 204,000 -
---------------------------------------------------------------------------
Net cash provided by financing activities 985,750 608,725
---------------------------------------------------------------------------
Change in cash 145,249 (332,594)
Cash, beginning of year 412,002 744,596
---------------------------------------------------------------------------
Cash, end of year $ 557,251 $ 412,002
---------------------------------------------------------------------------
Supplementary information:
Interest paid $ - $ -
Income taxes paid $ 2,301 $ -
---------------------------------------------------------------------------
Contacts:
Bingo.com, Ltd.
Henry Bromley
CFO
+1 264-461-2646
+1 264-498-3805 (FAX)
ir@bingo.com
www.bingo.com
© MarketWire2010
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