Bingo.com to expand local presence

Bingo.com Operations Ltd, the wholly owned Malta subsidiary of West Indies-domiciled Bingo.com, plans to strengthen and expand its local presence, chief finance officer Henry Bromley told The Times Business.

Bingo.com, the operator of arguably the world's largest online bingo hall, acquired licences from the Lotteries and Gaming Authority in March. It operates from premises in Ta' Xbiex and employs around a dozen people.

"At the outset of our operation in Malta, we have established the necessary local presence to secure the licence," Mr Bromley, who is based in Anguilla, said. "Going forward, while we are still finalising the licensing process with the LGA, we are planning to strengthen and expand this presence. As we strongly believe in running a very prudent operation, our transition and expansion plans in Malta will be carried out incrementally, in line with the growth in profitability."

Bingo.com has just announced first quarter gaming revenue of £894,738, up 40 per cent on the corresponding period in 2008 and an increase of nine per cent on the previous three months.

The company reported a net loss of $243,974 for January to March, a 37 per cent improvement from a net loss of $390,282 in the fourth quarter of 2008. Chief executive officer Tarrnie Williams described the first quarter figures as "pleasing".

The company's revenues are primarily received in sterling, while the majority of its expenses are reported in Canadian or US dollars. Bingo.com said exchange rate swings have negatively impacted operations.

"The weakness of sterling has affected our results because our reporting currency is US dollars and currently our depositing currency is sterling. We are now working on a multi-currency option which will allow players to deposit in various major currencies."

Mr Bromley said the impact of the recession on the business had been limited.

"Historically, gaming companies are usually relatively recession-proof, because people still enjoy playing. Bingo, in particular, is treated by our players as a form of entertainment rather than gambling, and especially given the low entry point - our cheapest cards are £0.01 - we anticipate that we can provide value in tough economic times."

By operating from Malta, the company is now able to advertise its gaming products in the lucrative British market, but Mr Bromley pointed out that Bingo.com has yet to start any direct campaigns in the UK. However, some large affiliates began to promote the website late in first quarter.

The parent company is particularly satisfied with the latest version of the portal, saying it is the most popular yet, having helped the operation reach the highest player acquisition levels so far. Mr Bromley would not divulge the company's plans for online features or player numbers, but explained that "the major change was a more attractive welcome page, with an easier to use sign-up registration page".

Publicly, Bingo.com claims to have over 1.95 million registered users.

"The increase in revenue is due to an increase in player base," he added. "We work very hard to build and support our search engine rankings and, as a result, our sign-up numbers are strong. We make every effort to retain those players by ensuring that their experience at Bingo.com is excellent: full of fun, community-oriented and backed with great customer support.

"Our main competitive advantage is our URL supported with the expertise we have developed in the search engine optimisation field. In addition, we are focused on maintaining a dialogue with our players, which in turn, fosters loyalty and a feeling of being valued."

The portal plans to tap new markets offering additional versions in various languages and currencies. A Spanish site has gone live. Bingo.com plans to support it with the launch of a euro currency option "in the near future".

Bingo.com, which attracts players to chat, share and play online, is publicly traded on the Nasdaq.