Bingo.com suffers Q2 revenue drop
Total revenues down 4% in quarter " CEO says annual profit target still in sight.
Bingo.com has posted total revenues for the quarter ended June 30 of US$347,742, a decrease of 4% compared to the same period in 2011.
The announcement also represents a 14% drop in revenues compared to the previous quarter this year, with “unfavourable gaming results late in the quarter” blamed for the disappointing numbers.
NASDAQ-listed Bingo.com, which offers multiplayer bingo, slot machines and sweepstakes, reported that gaming revenue stood at $339,869 for the second quarter ended June 30, a decrease of 4% compared $352,413 in the same period of 2011 and a 12% decrease from the first quarter of 2012.
Net loss for the period amounted to $28,908, an increase over a net loss of $24,930 in the first quarter of 2012.
CEO Jason Williams said the second quarter had been “challenging” for Bingo.com, as “despite increased gaming activity across many products, our revenues declined”.
“Our strategy with the second quarter was to reduce our marketing costs and focus on player development and retention, which was successful,” he said.
“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.”
The results follow the announcement earlier this year that Bingo.com cut its losses by 97% year-on-year and recorded a 64% year-on-year revenue rise in Q1.
But Williams, who replaced namesake Tarrnie Williams as CEO last year, revealed at the company’s full-year results presentation in February that anticipated marketing spend in the first quarter could result in a net loss.