The spread of casino and bingo games into social media has been hit and miss, but Bingo.com's latest financial announcement suggests that they hope that they have the winning formula. The group, which launched Trophy Bingo in the Google Playstore during the first quarter of 2014 are reporting an increase of 36% in revenue compared to the last quarter of 2013.
However, scrape away at the financial information given by Bingo.com and perhaps the garden is not as rosy as it could be. The figures for Q1 in 2014 are down 7% compared to the first quarter of 2013. Bingo.com qualify these numbers as being due to "a large insured jackpot winner" in 2013 Q4 and "a large marketing campaign in new markets in the first quarter of 2013". However these figures are less important when you consider the changes in operating costs.
According to Marketwatch, "general and administrative expenses increased to $900,536 in the first quarter of 2014". This represents an increase of 42% compared to the last three months of 2013. Bingo.com explain the reason for this huge hike in costs as being down to "amortizing the capitalized development costs, as well as expensing the current development costs" of Trophy Bingo. It would seem that they are pinning a lot of hope on the growth of this social based game!
Increases in expenses have meant cuts across other areas. Bingo.com are reporting "a decrease of 30% from expenses of $507,421 in the fourth quarter of 2013 and a decrease of 59% over expenses of $868,789 in the first quarter of 2013". All together the group had a loss of $352,692 compared to a loss of $230,167 in Q4 2013. There was some good news in that Bingo.com's cash and positive working capital had increased some what from previous months. However this could simply be down to the sale of 1,750,000 common shares which helped raise $700,000.
Reading between the lines it seems to us that Bingo.com are hoping that Trophy Bingo succeeds. A lot of time, money and energy has been invested in the brand and now is it's time to start yielding good results. Currently it's only attracting 2100+ players via Facebook and as yet the iPhone version of the game is unavailable. It'll be interesting to see just how Q2 and the rest of 2014 pans out for the brand.
In terms of Bingo.com's bingo product - we've been disappointed with it's direction. It used to be one of the more interesting sites with plenty of it's own promotions, but now - as part of the Unibet group - it's main focus seems to be slots and casino.
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