Anguilla, B.W.I. (PRWEB) April 14, 2006
Bingo.com, Ltd. (OTC BB: BNGOF), operator of the World’s Largest Bingo Hall, today announced its financial results for the fourth quarter and year end December 31, 2005. All amounts are presented in United States dollars and in accordance with United States Generally Accepted Accounting Principles.
Highlights of the 2005 fiscal year included:
- Revenue increased to $1,981,061, an increase of 71% over revenue of $1,158,620 in 2004
- Fourth quarter revenue increased to $654,438, an increase of 41% over revenue of $465,733 in the third quarter of 2005
- Fourth quarter gaming revenue increased to $353,348, an increase of 79% from third quarter gaming revenue of $197,873
- 2005 Net profit of $120,790
“2005 was a landmark year for Bingo.com,” stated Tarrnie Williams, the Company's CEO. “Our online gaming strategy was successfully implemented and has recorded strong growth since its initial launch. With our reduced reliance on advertising revenue, Bingo.com is now in a position to increase its marketing efforts and drive significant traffic into the cash games. We expect 2006 to be a record year for online bingo and Bingo.com.”
Bingo.com, Ltd. (the “Company”) ended the 2005 fiscal year with total revenue of $1,981,061, an increase of 71% over the previous year’s revenue of $1,158,620. Revenue for the fourth quarter of 2005 increased to $654,438 from $465,733 in the third quarter of 2005 and $389,921 in the fourth quarter of 2004. During the year ended December 31, 2005, we introduced traditional bingo for cash to our players. Our revenue from the cash bingo gaming operations amounted to $594,582 for the year ended December 31, 2005. Of the $654,438 in revenue for the quarter, the cash bingo operations provided revenue of $353,348, an increase of 79% from revenue of $197,873 in the third quarter of 2005. This increase is due to an increase in the number of cash bingo players. Advertising Revenue increased to $1,386,479 for the year ended December 31, 2005, an increase of 20% over revenue of $1,158,620 for the same period in the prior year. The Company earned advertising revenue of $301,090 in the fourth quarter of 2005, an increase of 12% from advertising revenue of $267,860 in the third quarter of 2005. The Company’s advertising revenue was earned from the sale of advertising on its Web portal, http://www.bingo.com, which experienced strong traffic throughout the year.
Operating costs before interest, depreciation and amortization expenses increased in 2005 to $1,409,739, from $692,952 for the prior year, an increase of 103%. Operating costs before interest, depreciation and amortization expenses were $479,781 for the quarter ended December 31, 2005, an increase of 96% compared to costs of $244,628 for the same period in the prior year and an increase of 45% compared to costs of $329,936 in the third quarter of 2005. The increase in operating costs compared to the prior year is primarily due to the commencement of the cash bingo operations during the 2005 fiscal year, especially incentive bonuses used in player acquisition and customer relations staff. Interest, depreciation and amortization totaled $48,160 and $8,066 for the year and quarter ended December 31, 2005, respectively, compared to $341,576 and $7,615 for the year and quarter ended December 31, 2004, respectively. The 85% decrease in interest, depreciation and amortization for the 2005 fiscal year is due to the conversion of both Debenture A and Debenture B into shares of the Company during the year ended December 31, 2005.
The Company ended the 2005 fiscal year with a net income of $120,790, or $0.00 per share, an improvement compared to a net loss of $71,640, or $0.00 per share for the prior fiscal year. The net income for the quarter ended December 31, 2005 amounted to $40,095 a 37% decrease over the net income of $63,591 for the same period in the prior year. This decrease in net income is due to the increased costs incurred in the commencement of gaming operations during the 2005 financial year.
Bingo.com, Ltd. operates the popular web portal http://www.bingo.com offering free games including multiplayer bingo, video poker, sweepstakes, slot machines, and more. With over 1,500,000 registered users and more than 800 new users everyday, http://www.bingo.com is one of the most recognized and most visited 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 29, 2006, 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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