Bingo.com, Ltd. being the operator of the World’s largest Bingo Hall has announced its final results for the fourth quarter and year end December 31, 2005. All amounts are given in US dollars and are based on the US generally accepted accounting principles. The 2005 fiscal year facts are:
Revenue increased up to $ 1,981,061 (to compare, in 2004 it made up $ 1,158,620)
Revenue in the fourth quarter amounted to $ 654,438 while in the third quarter in 2005 it amounted to $ 465,733, which is a 41% increase.
Fourth quarter gaming revenue went up to $ 353,348 thus it is 79% more than in the third quarter gaming revenue when it was $ 197,873 (this increase is due to an increase in the number of cash bingo players).
Net profit in 2005 made up $ 120,790.
During the year ended December 31, 2005, the company introduced traditional bingo for cash to the players. Their revenue from the cash bingo gaming operations ran as high as $594,582 for the year ended December 31, 2005. Simultaneously advertising revenue increased to $1,386,479 for the year ended December 31, 2005, that is a 20% increase over revenue of $1,158,620 for the same period in 2004. The Company made advertising revenue equal to $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, www.bingo.com, which experienced strong traffic throughout the year.
The 2005 operating costs before interest, depreciation and amortization expenses went up to $1,409,739, from $692,952 for the previous 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 expenses of $244,628 for the same period in the previous year and an increase of 45% compared to expenses of $329,936 in the third quarter of 2005. The increase in operating costs compared to the previous year has been achieved mainly 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 inter
est, depreciation and amortization for the 2005 fiscal year is explained by the conversion of both Debenture A and Debenture B into the Company’s shares during the year ended December 31, 2005.
As it has already been mentioned, the Company ended the 2005 fiscal year with a net income of $120,790, or $0.00 per share. That is considered to be 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 ran as high as $40,095 – that is a 37% decrease over the net income of $63,591 for the same period in the previous year. This decrease in net income is explained by the increased costs incurred in the commencement of gaming operations in 2005.
The Company’s CEO, Tarrnie Williams stated that 2005 was a very special year, as their online gaming strategy proved to be a success and has evidently grown since its launch. He added that with their reduced reliance on advertising revenues, they are about “to increase their marketing efforts and drive significant traffic into the cash games”. Obviously, 2006 is expected to be a record year for online bingo and Bingo.com.