Bingo.com Announces Third Quarter Results

• Press Release
• Source: Bingo.com, Ltd.
• On 11:02 pm EST, Tuesday November 10, 2009

ANGUILLA, BRITISH WEST INDIES--(Marketwire - 11/10/09) - Bingo.com, Ltd. (OTC.BB:BNGOF - News), operator of the popular online gaming community http://www.bingo.com, today announced its preliminary unaudited financial results for the third quarter ended September 30, 2009. All amounts are presented in United States dollars and in accordance with United States Generally Accepted Accounting Principles.

"The effects of the economic downturn were evident in our third quarter results," said Tarrnie Williams, the Company's CEO. "Online bingo players have become quite sophisticated and, with an increase in the number of similar product offerings, individual player values have contracted. In anticipation of this fact, we invested significant resources during the third quarter into a differentiated product that will soon be ready for release. The fourth quarter has started well and, when our new offering is live, we expect the business to be well positioned to return to growth and profitability."

Bingo.com highlights for the third quarter of 2009 included:

- Third quarter gaming revenue of 852,513 Pounds Sterling, an increase of 9% from gaming revenue of 781,948 Pounds Sterling for the third quarter of the prior year and a decrease of 11% from gaming revenue of 957,040 Pounds Sterling in the second quarter of 2009 when measured in Pounds Sterling, our depositing currency.

- Net loss of $390,432 in the third quarter of 2009

- Financed and installed new system architecture to host new games and new features

The Company's revenues are primarily received in Pounds Sterling whereas the majority of its fixed expenses are in both Canadian and United States Dollars. The large swings in the exchange rates of these currencies have negatively affected our operations.

Total revenue decreased by 8% to $1,436,296 for the quarter ended September 30, 2009, from revenue of $1,560,087 for third quarter of 2008 and a decrease of 5% from revenue of $1,512,116 in the second quarter of 2009. Gaming Revenue decreased to $1,383,534 (852,513 Pounds Sterling) in the quarter ended September 30, 2009, a decrease of 7% (9% increase when measured in Pounds sterling), compared to Gaming Revenue of $1,487,999 (781,948 Pounds Sterling) in the third quarter of 2008 and a decrease of 5% (11% decrease when measured in Pounds sterling), from revenue of $1,460,149 (957,040 Pounds Sterling) in the second quarter of 2009. The increase compared to the third quarter of 2008 and the decrease compared to the second quarter of 2009, is due to a varying levels of player deposits. We believe the decline in revenue compared to the second quarter of 2009 has been affected by the economic downturn in the United Kingdom economy. Bingo.com earned advertising revenue of $52,762 in the quarter ended September 30, 2009, a 27% decrease from advertising revenue of $72,088 in the third quarter of 2008 and an increase of 2% from advertising revenue of $51,967 in the second quarter of 2009.

Cost of revenue decreased to $962,525 during the quarter ended September 30, 2009, a decrease of 5% compared to costs of $1,009,045 for the third quarter of 2008 and an increase of 1% over costs of $951,954 in the second quarter of 2009. Cost of revenue consists of bonuses granted on deposits made by players, the cost of hosting the website, payment processing fees in relation to deposits from and withdrawals to our players, software license fees, and the domain name purchase payments. The decrease in cost of revenue for the quarter ended September 30, 2009, compared to the third quarter of 2008 is due to fluctuations in the pound relation to the US Dollar. The increase compared to the second quarter of 2009, is due to the increase in costs, especially bandwidth and gaming taxation, in relation to our Maltese operation.

Operating costs before interest, depreciation and amortization expenses, including sales and marketing and general and administrative expenses increased to $864,959 in the third quarter of 2009, an increase of 3% over operating expenses of $840,239 in the third quarter of 2008 and an increase of 3% over operating costs of $840,160 in the third quarter of 2009. The increase in operating expenses compared to the third quarter of 2008 and the second quarter of 2009 is due to fluctuations in the foreign currency market.

Sales and marketing expenses decreased to $427,311 during the third quarter of 2009, a decrease of 15% over sales and marketing expenses of $371,359 in the third quarter of 2008 and a decrease of 6% over expenses of $455,501 during the second quarter of 2009. These costs include sign up bonuses and incentives, affiliate commissions, advertising, and other promotional expenses intended to increase our subscriber base and improve gaming revenue. The increase compared to the third quarter of 2008, is primarily due to the increase in marketing expenses, particularly search engine optimisation costs incurred to retain our top ranking positions in the search engines. The decrease compared to the second quarter of 2009, is due to the decrease in marketing spend by the Company.

General and Administrative expenses consist of salaries, premises costs for our office, legal and professional fees, and other general corporate and office expenses. These expenses were $420,647 for the third quarter of 2009, an increase of 3% from general and administrative expenses of $409,645, in the third quarter of 2008 and a decrease of 2% from expenses of $429,384 for the second quarter of 2009. The increase compared to the third quarter of 2008, is due to an increase in the number of employees. The decrease compared to the second quarter of 2009, is due to expenses incurred for our Annual General Meeting held in the second quarter of 2009 and legal expenses incurred in the second quarter of 2009 in relation to our Maltese operations.

Net loss for the quarter ended September 30, 2009, amounted to $390,432, or $0.01 per share, an increase of 45% compared to a net loss of $268,774 or $0.01 in the third quarter of the prior year and an increase of 46% compared to a net loss of $266,702 or $0.01 per share for the second quarter of 2009. The increase in net loss is due to the decrease in revenue during the quarter.

The Company has made a provision for the progressive jackpots on its slots games and for players float. We had cash of $547,505 and working capital of $429,121 before the provision for jackpots and players float of $348,382 at September 30, 2009. This compares to cash of $412,002 and working capital of $336,316 before the provision for jackpots and players float of $211,821 at December 31, 2008.

For full details of the Company's operations and financial results, please refer to the Securities and Exchange Commission website at www.sec.gov or the Bingo.com website at http://www.bingo.com.

About Bingo.com

Bingo.com, Ltd. (OTC.BB:BNGOF - News) is the parent company of the Bingo.com group of companies which operates the popular online gaming community http://www.bingo.com. The Bingo.com group offers multiplayer bingo, slot machines, sweepstakes, and more. Players come together from around the world to chat, share, play and win at Bingo.com. With over 1,975,000 registered users http://www.bingo.com is one of the most recognized and most visited bingo entertainment destinations on the Internet.

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 28, 2008, and the prospectus filed under Rule 424(b) of the Securities Act on March 9, 2005 and the SB2 filed July 17, 2007, 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, Ltd.

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BINGO.COM, LTD. and subsidiaries
Consolidated Balance Sheets

---------------------------------------------------------------------------
                                                  September 30, December 31,
                                                          2009         2008
---------------------------------------------------------------------------
                                                    (Unaudited)    (Audited)
Assets
Current assets:
 Cash                                              $   547,505  $   412,002
 Accounts receivable less allowance for doubtful
  accounts $nil (December 31, 2008 - $nil)              82,039       43,239
 Prepaid expenses                                       74,598      123,650
---------------------------------------------------------------------------
Total Current Assets                                   704,142      578,891

Equipment, net                                         158,422      199,367

Other assets                                           148,574      122,335

Domain name rights and intangible assets             1,257,241    1,257,241

Deferred tax asset, less valuation allowance
 of $48,939 (December 31, 2008 - $275,926) (Note 6)          -            -

---------------------------------------------------------------------------
Total Assets                                       $ 2,268,379  $ 2,157,834
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Liabilities and Stockholders' Equity
Current liabilities:
 Accounts payable                                  $   103,083  $   121,208
 Accrued liabilities                                   112,520       99,031
 Accounts payable and accrued liabilities
  - related party (Note 7)                              59,418       22,336
 Provision for progressive jackpots                    266,880      159,798
 Players float                                          81,502       52,023
---------------------------------------------------------------------------
Total Current Liabilities                              623,403      454,396
---------------------------------------------------------------------------

Commitments (Note 5)
Contingent liabilities (Notes 9, 10 and 11)

Stockholders' equity (Note 4):
 Common stock, no par value, unlimited shares
  authorized, 41,517,703 shares issued
  and outstanding (December 31, 2008
  - 36,200,203)                                     14,785,054   13,942,408
 Accumulated deficit                               (13,164,658) (12,263,550)
 Accumulated other comprehensive loss:
  Foreign currency translation adjustment               24,580       24,580
---------------------------------------------------------------------------
Total Stockholders' Equity                           1,644,976    1,703,438

---------------------------------------------------------------------------
Total Liabilities and Stockholders' Equity         $ 2,268,379  $ 2,157,834
---------------------------------------------------------------------------
---------------------------------------------------------------------------

See accompanying notes to consolidated financial statements.


BINGO.COM, LTD. and subsidiaries
Consolidated Statements of Operations
For Periods Ended September 30, 2009 and 2008
(Unaudited)

---------------------------------------------------------------------------
                          Nine           Nine          Three          Three
                        Months         Months         Months         Months
                         ended          ended          ended          ended
                     September      September      September      September
                      30, 2009       30, 2008       30, 2009       30, 2008
---------------------------------------------------------------------------

Advertising
 revenue          $    144,627  $     234,382  $      52,762  $      72,088
Gaming revenue       4,128,415      4,085,910      1,383,534      1,487,999
---------------------------------------------------------------------------
Total revenue        4,273,042      4,320,292      1,436,296      1,560,087

Operating
 expenses:
 Cost of
  producing
  revenue            2,784,828      2,873,302        962,525      1,009,045
 Depreciation
  and amortization      52,389         42,343         18,372         14,518
 Directors fees          4,500              -          4,500              -
 General and
  administrative       396,915        414,295        126,784        135,669
 Salaries,
  wages,
  consultants
  and benefits         762,343        776,060        265,265        248,342
 Selling and
  marketing          1,217,057        967,127        427,311        371,359
 Stock-based
  compensation          52,406         60,911         24,099         25,633
---------------------------------------------------------------------------
Total operating
 expenses            5,270,438      5,134,038      1,828,856      1,804,566
---------------------------------------------------------------------------

Loss before
 other income
 (expense) and
 income taxes         (997,396)      (813,746)      (392,560)      (244,479)

Other income
 (expense):
 Foreign
  exchange gains
  (losses)              15,814        (69,096)       (17,000)       (59,235)
 Gain on
  resolution of
  debt                  35,039         46,889              -         20,844
 Loss on
  disposal of
  equipment             (1,240)        (2,121)        (1,240)          (114)
 Interest income         1,430         15,891            369          6,710
 Other income               11            178              -              -
 Profit from
  sale of US
  players
  and related
  assets (Note 3)       47,500         55,500         20,000          7,500
---------------------------------------------------------------------------

Loss before
 income taxes         (898,842)      (766,505)      (390,431)      (268,774)

Income tax
 expense                 2,266              -              1              -
---------------------------------------------------------------------------

Net loss          $   (901,108) $    (766,505) $    (390,432) $    (268,774)
---------------------------------------------------------------------------

Net loss per
 common share,
 basic and
 diluted          $      (0.02) $       (0.02) $       (0.01) $       (0.01)
---------------------------------------------------------------------------

Weighted average
 common shares
 outstanding,
 basic and
 diluted            40,149,214     35,092,369     41,449,225     36,200,203
---------------------------------------------------------------------------

See accompanying notes to consolidated financial statements.


BINGO.COM, LTD. and subsidiaries
Consolidated Statements of Stockholders' Equity
For the period ended September 30, 2009
(Unaudited)

---------------------------------------------------------------------------
                                                   Accumulated
                                                         Other
                                                 Comprehensive
                                                          loss
                                                       Foreign        Total
                    Common stock                      currency        Stock-
            -----------------------   Accumulated  translation      holders'
                Shares       Amount       Deficit   adjustment       Equity
---------------------------------------------------------------------------
Balance,
 December
 31, 2008   36,200,203 $ 13,942,408 $ (12,263,550)    $ 24,580    1,703,438

 Exercise
  of stock
  options      317,500       31,750             -            -       31,750

 Private
  placement  5,000,000      750,000             -            -      750,000

 Stock-
  based
  compens-
  ation              -       52,407             -            -       52,407

 Issuance
  of
  consultant
  stock
  options            -        8,489             -            -        8,489

 Net loss            -            -      (901,108)           -     (901,108)
---------------------------------------------------------------------------
Balance,
 September
 30, 2009   41,517,703 $ 14,785,054 $ (13,164,658)    $ 24,580  $ 1,644,976
---------------------------------------------------------------------------

See accompanying notes to consolidated financial statements.


BINGO.COM, LTD. and subsidiaries
Consolidated Statements of Cash Flows
Nine Months Ended September 30, 2009 and 2008
(Unaudited)

---------------------------------------------------------------------------
                                                           2009        2008
---------------------------------------------------------------------------
Cash flows from operating activities:
 Net loss                                            $ (901,108) $ (766,505)
 Adjustments to reconcile net loss to net cash
  used in operating activities:
  Depreciation and amortization                          52,389      42,343
  Gain on resolution of debt                            (35,039)    (46,889)
  Loss on disposal of equipment                           1,240       2,121
  Stock-based compensation                               52,407      60,911
  Issuance of consultant stock option                     8,489       8,489
  Profit from the sale of US players and related
   assets                                               (47,500)    (55,500)
 Changes in operating assets and liabilities:
  Accounts receivable                                   (38,800)    101,829
  Prepaid expenses                                       49,052      18,710
  Other assets                                          (26,239)    (58,854)
  Accounts payable and accrued liabilities               67,484      70,687
  Provision for progressive jackpots                    107,083     122,329
  Players float                                          29,479      (1,251)
---------------------------------------------------------------------------
 Net cash used in operating activities                 (681,063)   (549,837)
---------------------------------------------------------------------------

Cash flows from investing activities:
 Acquisition of equipment                               (13,098)   (110,640)
 Proceeds on the disposal of equipment                      414           -
 Proceeds from sale of US players and related assets     47,500      55,500
---------------------------------------------------------------------------
 Net cash provided by (used in) investing activities     34,816     (55,140)
---------------------------------------------------------------------------

Cash flows from financing activities:
 Exercise of stock options                               31,750       8,725
 Private placements                                     750,000     600,000
---------------------------------------------------------------------------
 Net cash provided by financing activities              781,750     608,725
---------------------------------------------------------------------------

---------------------------------------------------------------------------
Increase in cash                                        135,503       3,748

Cash, beginning of period                               412,002     744,596
---------------------------------------------------------------------------
Cash, end of period                                  $  547,505  $  748,344
---------------------------------------------------------------------------

Supplementary information:
 Interest paid                                       $        -  $        -
 Income taxes paid                                   $    2,266  $        -
---------------------------------------------------------------------------

See accompanying notes to consolidated financial statements.

 
Contacts:
Bingo.com, Ltd.
Henry Bromley
CFO
(264) 461-2646
(604) 694-0301 (FAX)
ir@bingo.com
www.bingo.com