Bingo.com Announces Fourth Quarter and Year End Results
VANCOUVER, British Columbia
Bingo.com, Inc.
Henry Bromley
(604) 694-0300
Fax: (604) 694-0301
ir@bingo.com
www.bingo.com
Bingo.com, Inc. (OTCBB:BIGR), operator of the Internet's pre-eminent bingo portal, today announced its financial results for the fourth quarter and year end December 31, 2004. All amounts are presented in United States dollars and in accordance with United States Generally Accepted Accounting Principles.
Highlights of the 2004 fiscal year included:
- Revenue increased to $1,158,620, an increase of 30% over revenue of $888,888 in 2003
- Fourth quarter revenue increased to $389,921, an increase of 42% over revenue of $274,758 in the third quarter of 2004
- Fourth quarter profit of $63,591, the second consecutive positive quarter, an increase of 42% from the third quarter of 2004
- The conversion of all Debentures into shares of the Company
- The Company initiated the merger with its subsidiary for the purpose of moving the Company's jurisdiction from Florida to Anguilla, BWI
"Our continued improvement in financial performance is very satisfying," remarked Tarrnie Williams, the Company's CEO, "and we look forward to an exciting 2005."
Bingo.com, Inc. (the "Company") ended the 2004 fiscal year with total revenue of $1,158,620, a 30% increase over the previous year's revenue of $888,888. Revenue for the fourth quarter of 2004 increased to $389,921 from $274,758 in the third quarter of 2004 and $273,713 in the fourth quarter of 2003. The majority of the Company's revenue was earned from the sale of advertising on its Web portal, www.bingo.com, which experienced strong traffic throughout the year.
Operating costs before interest, depreciation and amortization expenses increased in 2004 to $692,952, from $598,380 for the prior year, an increase of 16%. Operating costs before interest, depreciation and amortization expenses were $244,628 for the quarter ended December 31, 2004, an increase of 62% compared to costs of $151,060 for the same period in the prior year. The increase in operating costs compared to the prior year is due to a variety of factors including an increase in salaries; an increase in legal expenses on merging the Company with its subsidiary in Anguilla, British West Indies and the filing of the Form S-4 with the Securities Exchange Commission; and due to the weakness of the United States dollar in comparison to the Canadian dollar. Interest, depreciation and amortization totaled $341,576 and $7,615 for the year and quarter ended December 31, 2004, respectively, compared to $317,699 and $80,021 for the year and quarter ended December 31, 2003, respectively. The 8% increase in interest, depreciation and amortization for the 2004 fiscal year is due to the conversion of both Debenture A and Debenture B into shares of the Company during the year ended December 31, 2004.
The Company ended the 2004 fiscal year with a net loss of $71,640, or $0.00 per share, an improvement of 70% compared to a net loss of $235,491, or $0.02 per share for the prior fiscal year. The net profit for the quarter ended December 31, 2004 amounted to $63,591, a significant improvement over the net loss of $26,095 for the same period in the prior year.
About Bingo.com
Bingo.com, Inc. operates the popular web portal www.bingo.com offering free games including multiplayer bingo, video poker, sweepstakes, slot machines, and more. With over 1,000,000 registered users and more than 800 new users everyday, www.bingo.com is one of the most recognized and most visited Bingo entertainment destinations on the web.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by the company) contains statements that are forward-looking, such as statements relating to anticipated future success of the company. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the company. For a description of additional risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission. Specifically, readers should read the Company's Annual Report on Form 10-KSB, filed with the SEC on March 21, 2005, and the prospectus filed under Rule 424(b) of the Securities Act on March 9, 2005, for a more thorough discussion of the Company's financial position and results of operations, together with a detailed discussion of the risk factors involved in an investment in Bingo.com, Inc.
