Anguilla, B.W.I. (PRWEB) December 1, 2005
Bingo.com, Ltd. (OTC BB: BNGOF), operator of the Internet’s pre-eminent online bingo portal, today announced its financial results for the third quarter ended September 30, 2005. All amounts are presented in United States dollars and in accordance with United States Generally Accepted Accounting Principles.
Bingo.com highlights of the third quarter of 2005 include:
- Profit of $46,965, the fifth consecutive positive quarter.
- Total revenue of $465,733, a 2% increase over revenue of $457,339 in the second quarter of 2005.
- Successful completion of the first full quarter of Cash Bingo gaming operations.
- Cash Bingo revenue of $197,873, an increase of 356% over Cash Bingo revenue of $43,361 that was generated over a six week period in the second quarter of 2005.
“Bingo.com has achieved its quarterly objectives of increased profitability and strong gaming revenue growth”, commented Tarrnie Williams, the Company’s CEO. “In the fourth quarter we intend to further reduce our reliance on advertising revenue while continuing to develop and expand the size of our gaming operations.”
The Company had cash of $1,110,306 and working capital of $633,247 at September 30, 2005. This compares to cash of $1,191,682 and working capital of $572,562 at June 30, 2005 and cash of $74,032 and a working capital deficit of ($625,376) at December 31, 2004.
Total revenue increased to $465,733 for the quarter ended September 30, 2005, an increase of 2% from revenue of $457,339 in the second quarter of 2005 and an increase of 70% from revenue of $274,758 for the same period in the prior year. Of the $465,733 in revenue for the quarter, the Cash Bingo operations provided revenue of $197,873, an increase of 356% from revenue of $43,361 in the second quarter of 2005. This increase in revenue over the second quarter 2005 is due to strong growth and the provision of Cash Bingo games for the entire quarter. Bingo.com did not introduce Cash Bingo until the middle of the second quarter of 2005. The Company earned advertising revenue of $267,860 in the quarter ended September 30, 2005, a decrease of 35% from advertising revenue of $413,978 in the second quarter of 2005. This decrease is due to Management’s decision to limit the amount of advertising available to third parties in order to increase the traffic to our own Cash Bingo games. The increase in revenue compared to the third quarter of 2004 is due to greater traffic to the online bingo site and increased rates for the advertising portion of the revenue.
Operating costs before interest, depreciation and amortization expenses decreased to $299,695 in the third quarter of 2005, a decrease of 10% over operating costs of $334,740 in the second quarter of 2005. The decrease in operating expenses is primarily due to the decrease in legal expenses incurred as a result of merging the online bingo Company with its subsidiary in Anguilla, British West Indies in the second quarter of 2005. This decrease was partially offset by an increase in Cash Bingo sales and marketing expenses incurred in the third quarter of 2005.
Net profit for the quarter ended September 30, 2005, amounted to $46,965, a significant increase in net profit compared to net profit of $1,522 for the second quarter of 2005, and an increase of 16% compared net profit of $40,415 in the third quarter in the prior year. The increase in net profit compared to the third quarter of 2004 and the second quarter of 2005 is due to the increase in revenue.
Bingo.com, Ltd. operates the popular web portal http://www.bingo.com offering free and cash games including multiplayer bingo, video poker, sweepstakes, slot machines, and more. With over 1,200,000 registered users and more than 800 new users everyday, http://www.bingo.com is one of the most recognized and most visited online bingo entertainment destinations on the web.
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-KSB, filed with the SEC on March 21, 2005, and the prospectus filed under Rule 424(b) of the Securities Act on March 9, 2005, 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.
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