Bingo.com cuts marketing spend ahead of mobile and tablet rollout7th August 2014 7:12 am GMT
Bingo.com, the online bingo operator part-owned by Sweden’s Unibet, has reported a 12 per cent drop in total revenue to $431,185 for the second quarter of 2014 after reducing marketing spend in anticipation of releasing mobile and tablet versions of its offering.
Gaming revenue fell 12 per cent year-on-year to $426,921, and was down 21 per cent versus the previous quarter following a decrease in players. Advertising revenue contributed a further $4,265 during the quarter.
Bingo.com CEO Jason Williams said: “In anticipation of a quarterly decline in our second quarter revenues, we reduced our marketing spend until mobile and tablet support for our gambling products are delivered by our technology supplier.
“We expect this to occur in the third quarter which should provide a boost to our European gambling business.”
Operating costs increased by 38 per cent to $660,265 after the company ceased to capitalize the development of its soon-to-launch social product Trophy Bingo and commenced expensing the current development costs.
Within this, sales and marketing expenses were down 32 per cent to $205,825 due to a larger media budget in the comparative period which was designed to drive additional players to the website and to expand into new European markets.
Bingo.com incurred a net loss for the quarter of $350,351, compared to net income of $10,449 a year ago.
The company added that it is finalising development activities to ready Trophy Bingo for launch during the third quarter.
“We are focused on preparing for the launch of our social casino product Trophy Bingo which will initially be launched onto Android mobile and tablet devices, and shortly thereafter followed by iOS mobile devices,” continued Williams. “Trophy Bingo is an innovative product in the social bingo marketplace, containing many new features and unique Power Plays. We are enthusiastic about its market potential and look forward to its imminent launch.”
As at June 30th the company had cash of $971,141, compared to cash of $491,203 a year ago.
Shares in Bingo.com Limited (Co. Data) (OTCBB:BNGOF) closed at $0.38 per share in New York yesterday.