Internet based bingo giant Bingo.com released its second quarter 2012 financial results, highlighting a disappointing decline in revenues from the highs of the first quarter.
Key financial indicators for the period ending June 30th, 2012 were:
Revenues down 4% from the same period last year. The revenues come after the company brought in a 64% increase in revenues during the first quarter.
The company ran a net deficit for the quarter, up nearly $4,000 to $28,908.
Bingo.com issued a company statement regarding the fiscal results, which read:
“This decrease compared to the second quarter of 2011 and the first quarter of fiscal 2012 is due to unfavourable gaming results late in the quarter."
“We earned advertising revenues of $7,873 in the quarter ended June 30, 2012, a decrease of 29% from advertising revenue of $11,079 in the second quarter of 2011 and a decrease of 59% from advertising revenue of $19,382 in the first quarter of 2012.”
Bingo.com CEO Jason Williams also commented, saying: “Despite increased gaming activity across many products, our revenues declined."
“Our strategy in the second quarter was to reduce our marketing costs and focus on player development and retention, which was successful. While we achieved our objective of improving our total operating margin, low gross margins in our casino products late in the quarter and a negative impact from currency fluctuations combined to give us a net loss for the quarter."
"However, our task is to post an annual net profit for Bingo.com and with the third quarter off to a strong start we believe that milestone will still be reached.”