CryptoLogic Posts Q3 Losses As Shares Hit New 52 Week Low

CryptoLogic Inc, the Irish based gaming software provider, has released third quarter figures showing revenue down by 32% to $9.95 million compared to $14.05 million a year earlier.
In the first nine months of 2009, CryptoLogic has shown a net loss before minority interest of $11.12 million compared to a $6.91 million loss in the same period last year. Nine month revenue was down to $29.87 million from $50.17 million in 2008 and loss per share was $0.81 compared to $0.50 last year.
Reflecting a broader trend across the industry, poker revenues had fallen dramatically from $3.2 million in Q3 2008 to $500,000 in 2009, while hosted casino revenues had declined to $7.1 million from $10.1 million in 2008.
Commenting on the results, a company spokesman said: “Uncertain macroeconomic conditions and sluggish wagering activity contributed to a significant decline in wagering volumes in both casino and poker compared with the previous year. While the third quarter is traditionally the slowest season for Internet gaming, the seasonal uptick in demand normally seen in September was well below historic trends.”
Branded game revenue continued to grow for the third quarter in a row but were negatively impacted by new licensees rolling the games out slower than expected.
CryptoLogic also noted positive results for its cost cutting efforts with Q3 expenses at $13.09 million,down 38.2% from the comparable period in 2008 at $21.17 million.
Despite the company predicting a further loss in Q4, mostly due to the adverse economic climate, Brian Hadfield, CryptoLogic’s President and CEO, remained fairly upbeat and said:
“Despite a disappointing third quarter, CryptoLogic’s business strategy is delivering tangible progress, albeit at a slower pace than anticipated. With a lower cost base, the largest customer roster in CryptoLogic’s history and our third consecutive quarter of increased revenue from branded games, we remain focused on executing our plan – and returning to profitability and long term growth.”
On receiving the third quarter results, the market reacted adversely with shares in the company reaching a new 52-week low of 237.50 pence per share on the LSE.