Bingo.com cuts Q1 losses by 97%
Revenues up 64% year-on-year following increased marketing investment.
Bingo.com has shown continued signs of stability after cutting its losses by 97% year-on-year and recording a 64% year-on-year revenue rise, the company has revealed in its results for the three months ended 31 March.
The loss breaks a run of three successive profitable quarters before these Q1 results, but CEO Jason Williams 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.
In the first quarter of 2011 Bingo.com’s losses amounted to US$743,332, however this quarter the figure dropped to $24,930.
Jason Williams, who replaced namesake Tarrnie Williams as CEO last year, said: “While it’s unfortunate to post a net loss for the quarter, our strategy was to make significant investments in marketing and I’m pleased that the loss is small.”
The rise in revenues, up 64% year-on-year and 4% quarter-on-quarter to $406,307, were attributed to this increased marketing outlay, while gaming revenue rose 67% year-on-year and 5% quarter-on-quarter.
Q1 saw Bingo.com add Lucky Numbers Bingo and Deal or no Deal Bingo to its portfolio, but Williams explained that “In the second quarter we intend to focus on player retention and with a smaller marketing investment planned, we anticipate a return to profitability.”