Bingo.com have published their financial results for the first quarter of the year, ending March 31st 2013, and are anticipating a “historic” second quarter as their social bingo roll-out continues.
With Q1 revenues of nearly $600,000, the company achieved a year-on-year growth rate of 45%, from just over $400,000 in Q1 2012; this also represents a 7% quarterly growth rate, following Q4 2012’s revenues of around $550,000.
The group’s games are now being played by more people more often than ever before, with expansion into new territories helping to underpin this organic growth, and a return to the North American market on the cards thanks to Bingo.com’s current entry into the social bingo segment.
Chief executive officer Jason Williams said: “The second quarter is already historic for us as Bingo.com has returned to the North American market with its entry into the social casino segment with Trophy Bingo.
“With the game entering its beta testing phase, we are enthusiastic about our innovative product and its potential in the global online bingo industry.”
Overall in Q1, the company made a net loss of almost $500,000, but Mr Williams stresses that they were aware that this would be the case due to the costs involved in pursuing an aggressive marketing campaign.
During Q2, he says the brand’s marketing efforts are due to be dialled down, helping to reduce their outgoings and help to bring the books back into the black in time for medium-term financial updates.
Looking at the sales and marketing expenses specifically, in Q1 Bingo.com spent $868,789 on promotional activities including SEO, television marketing, and player prizes, bonuses and other special offers aimed at members.
This was up by 191% compared with Q1 2012, when just $298,339 was spent, and up by 107% even from the previous quarter, with $419,954 spent on sales and marketing in Q4 2012.
Q1 2013 saw $582,760 in gaming revenues and $7,439 in advertising revenues earned by Bingo.com, making the total revenues of just over $590,000; while gaming revenues were up significantly thanks to the brand’s marketing presence, its own advertising receipts were down.
However, Bingo.com remains in the black in terms of its cash and working capital; at the end of Q1 2013, the company had $550,997 in cash reserves and $920,435 in positive working capital, positioning it well for the quarter to come as its entry into social bingo and new country markets worldwide continues.
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