BUSINESS

Bingo.com returns to profitability

TAGs: Bingo.com, financial results

bingo.com logoIt’s been five years of hemorrhaging, but with the announcement of their second quarter financial results, Bingo.com has returned to profitability.

Yesterday, Bingo.com reported its profitable quarter since the second quarter of 2006 with Net income for the three months ended June 30, 2011 at $8,520 compared to a net loss of $743,332 in the first quarter of 2011.

The financial results reported a revenue of $363,492, an increase of 47% from revenue of $247,044 in the first quarter of 2011.

Jason Williams, Bingo.com’s CEO said of the results, “In the first quarter of 2011, we completed the restructuring of Bingo.com’s strategy, technology, and personnel and are pleased to see the positive results that have been achieved. As a member of the Unibet partner program, Bingo.com’s international player acquisitions and revenues have greatly improved. The combination of a multi-language and multi-currency approach with a wide selection of premium bingo and casino games has resulted in high player values from a number of countries. With the launch of Bingo.com’s marketing initiatives in January 2011 and the rise of our active player base, Bingo.com’s revenues have climbed steadily. Now with higher revenues and lower operating costs, Bingo.com has been able to secure its first profitable quarter since the second quarter of 2006. Moving forward, Bingo.com will continue to invest in targeted marketing initiatives with the intention of growing revenues and profits.”

The return to profitability can be largely attributed to a slashing in operating costs. The company’s operating costs were $354,947 in the second quarter of 2011, a decrease over operating costs of $987,749 in the first quarter of 2011 and a decrease over operating expenses of $425,892 in the second quarter of 2010.

The company stated in their results that the decrease in operating expenses compared to the first quarter of 2011 and the second quarter of 2010, is the result of a significant reduction in operating costs, especially the reduction in the number of staff and the targeted television marketing campaign in the first quarter of 2011.

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