MARINA DEL REY, Calif., Sept. 5 /PRNewswire/ -- Bingo.com, Inc.
(OTC Bulletin Board: BIGR), 'the most addicting experience on the Web,' today
sent the following letter to its stockholders, partners, employees and the
Bingo.com community:
To Our Stockholders, Partners, Employees and the Bingo.com Community.
Our Second Quarter In Review
Thus far, 2000 has been an historic year for Bingo.com, filled with
astonishing growth, corporate stability, and remarkable milestones.
Since we launched our site a mere 250 days ago, our presence in the market
has grown dramatically. Here are a few points to consider: we launched the
new Bingo.com site in December 1999 with very few registered users, and
currently we have over approximately 300,000 registered users. We currently
grow registrations at a rate of 1.5 new registrants per minute, 24 hours a
days, seven days a week. During the second quarter of 2000, we attracted over
2,000,000 unique visitors to our Web site. Our players spend more than
2 million minutes per day on our site, in aggregate. We served our 100
millionth Bingo cards to players earlier this month. We've built and launched
stunning games, which are critically acclaimed in the market. The list goes
on and on...
Bingo.com built these assets through a combination of creative content and
proprietary technology. Owning these assets allows us to generate increased
volumes of site traffic, develop fun content and loyal user communities, and
launch innovative Internet advertising platforms at comparatively fixed costs.
Nielsen//NetRatings in partnership with ACNielsen eRatings.com just ranked
Bingo.com as "The Stickiest Site on the Internet" for the month of July, as
reported by USA Today. "Stickiness" is an industry term for measuring how
long users stay on a site. Their research shows that registered users are
spending an astonishing average of 9 hours per month on the site. This
measurement is extremely important to potential advertisers seeking a captive
audience. Bain & Company, a leading global strategy-consulting firm, ranked
Bingo.com in 'the top10 e-businesses,' for its innovation, impact and
execution. Bingo.com has been voted the number one free bingo game on the Web
by a number of polls. Moreover, by creating a unique blend of sticky,
personal community atmosphere and entertaining features, Bingo.com has
developed incredible player loyalty. Together with you, our players and
shareholders, we have succeeded in making Bingo.com one of the most
recognizable Internet brands, with numerous media accolades. Companies can
spend hundreds of millions of dollars building brands. We have done it for
considerably less. This bodes well for our future.
Now that much of the hardest engineering work is done, we are in a
position to reap the rewards by licensing our proprietary technology out to
others. For example, Bingo.com provides the bingo games to
http://www.netels.com, a new Spanish-language portal, and also recently
launched our first American private label bingo game, which you can see at
http://www.alwaysfreebingo.com. We are looking into adapting versions of our
content for the Japanese wireless market, and are considering regular
inquiries to license our bingo and poker games from interested parties all
around the globe.
Recently, we announced relationships with Level 3 Communications, Sun
Microsystems, and Oracle Corporation, to strengthen our infrastructure, which
allows us to continue to serve more players. In April 2000, we filed a
provisional patent application for a Web-based technology to monetize our
incredible user sessions and potentially generate brand new revenue streams.
We further expanded our games with the recent introduction of a new line-up of
beautiful multi-player video poker games. A number of promising initiatives
are continuously underway to develop new products and services designed to
provide greater entertainment value to our loyal community.
We reported revenues from operations of $57,588 for the quarter ended
June 30, 2000 -- up from $4,280 in our first quarter of operations since after
the launch of site in December of 1999. Revenues resulted primarily from
advertising and co-branding contracts. Advertising sales, co-branding and
other forms of revenue are continuing to fill the financial pipeline reducing
our monthly burn rate. As a result our cash position remains strong. It is
important to note that Bingo.com is just now becoming recognized as an
advertising property. Ad buys on our site which were 'test buys' in Q2 have
become full buys and, better yet, renewals in Q3. The size of the buys and
the types of advertisers buying on our site is steadily improving. Our
agency, Cox Interactive Sales, is finding more and more advertisers willing to
spend significant dollars on Bingo.com. Building value is an evolutionary
process, not an overnight occurrence. All things considered, we are doing
remarkably well, so well in fact that we have reason to hope to be cash flow
neutral to cash flow positive by the final quarter of this year. Thereafter
we have high expectations: the Internet is still an awesome distribution
engine, and we have all of the elements in place for success.
The company is projecting revenue from operations to be $275,000 in the
third quarter and $450,000 in the final quarter of 2000.
We remain focused
Throughout this year, we have remained focused on enhancing the site
content to deliver 100 percent customer satisfaction to our visitors on a
daily basis.
The best is yet to come
As entertainment and game sites show unprecedented growth rates, Bingo.com
continues to build a solid technology platform to take advantage of the
exponential growth of the Internet. We are committed to improve our user
experiences and expand our community, while developing new features and
services. We believe Bingo.com is uniquely positioned to take advantage of
the Internet opportunity as we carry out our mission to take the lead in
online entertainment, and create long-term value in the company.
As we look forward, we are very excited about what lies ahead. As we
expand our community, add new game categories, and extend our services
worldwide, we would like to thank our stockholders, partners, and employees
for their support. But most of all, we especially want to thank our members.