The operator of the online bingo site Bingo.com, Bingo.com Limited, has released its unaudited financial results for Q2,2009 showing a twelfth consecutive losing quarter, attributed to rising marketing costs.
The firm's net loss of $266,702, was 13% higher than the same period last year, and 8% up on Q1,2009. Management attributed the loss to increased cost of marketing, which it said was necessary to enable the operation to succeed in an increasingly competitive UK market sector.
A company spokesman said: "We had cash of $848,749 and working capital of $752,304 before the provision for jackpots and players float of $340,317 at June 30, 2009. This compares to cash of $412,002 and working capital of $336,316 before the provision for jackpots and players float of $211,821 at December 31, 2008."
Second quarter gaming revenues of £957,040 were achieved, up by 41% year-on-year and seven percent higher than the previous quarter.
Bingo.com Limited recently completed a private placement of 1.5 million shares that brought in $225,000, while total revenues increased seven percent year-on-year and 14% quarter-on-quarter to $1.51 million.
"The second quarter of 2009 was a challenge for Bingo.com" said Tarrnie Williams, the company's CEO. "While our traffic and revenues continue to increase, the competition in the United Kingdom online bingo market is intense and has resulted in a reduction of individual player values.
"Our costs have increased due to our Maltese gaming license, affiliate marketing costs and our continued investment in search engine optimisation.
"We recognise that to capture a higher percentage of the online bingo market share and reach profitability we need to offer our players a unique gaming experience. As we put cost saving measures in place and continue to focus on improving the Bingo.com system, we believe we will achieve profitability in the coming quarters."
Source: InfoPowa News