Online gaming community operator Bingo.com has shared that intense competition in the UK market has resulted in a reduction of individual player values in the second quarter.
The company’s second quarter gaming revenue was £957,040, an increase of 41% from gaming revenue of £678,108 for the second quarter of the prior year. Its loss increased by 9% to $266,702.
Bingo.com’s costs increased due to its Maltese gaming license, affiliate marketing costs, and its continued investment into search engine optimisation.
Cost of revenue increased to $951,954 during the quarter. This 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 players, software license fees, and the domain name purchase payments.
In addition, due to increase in deposits, more deposit bonuses were granted. The awarding of deposit bonuses has been required both to be competitive with other bingo-oriented websites and to build a large customer base as quickly as possible.
Sales and marketing expenses were $455,501.
Bingo.com’s loss widens in Q2
Published on Sep 7, 2009
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