Bingo.com posts $250k loss in third quarter 2010

ANGUILLA, WEST INDIES – Bingo.com is undergoing radical changes to try and improve its bingo offering and again posted a net loss of $245,000 as the company builds its partnership with Unibet, who recently took over the running of the site.

Tarrnie Williams, CEO of Bingo.com said of the recent results, “”The third quarter of 2010 was one of transition for Bingo.com. The first phase of our revised business plan is now underway. Our costs have declined, our net loss has been reduced, and the purchase of the remaining 4% domain name payments for the Bingo.com URL has been completed. The second phase of our plan has also begun as we are preparing a new Bingo.com marketing campaign and working with Unibet to perfect the online bingo offering. The third and final phase of our plan will start in the first quarter of 2011 when we launch our media plan in markets targeted to provide Bingo.com with the best return on investment and the highest likelihood of helping the Company return to profitability.”

Total revenue for Bingo.com in the thirs quarter of 2010 was down 93 per cent on the same period last year and totalled just $97,500, compared to $1.44 million. This revenue was also a fall of 72 per cent compared to 2010 second quarter revenues, which totalled $353,000.

Bingo.com has struggled to keep players on its site as they had to migrate from the old software to the Unibet system during the quarter ending June 30th 2010.

Sales and marketing expenses have fallen sharply by nearly 91 per cent to $39,900 in the third quarter 2010, compared to $427,000 of marketing spending in the same period in 2009.

“The decrease in marketing expenses for the quarter ended September 30, 2010, compared to the third quarter of 2009, is primarily due to migration to the Unibet partner program where significantly lower marketing bonus are granted to players”, stated the company.

Unibet acquired a total stake of 25.9 per cent in Bingo.com in May 2010. Bingo.com also announced that it has reduced general and administrative costs as well as making the remaining four per cent domain name payments for the Bingo.com URL.