Cryptologic Sees Year On Year 2nd Quarter Loss Of $6.2 MillionAugust 14, 2009 10:35 am
CryptoLogic Inc, the Canadian software provider to the Gaming Industry, released figures showing a decrease in 2nd quarter revenue from last year’s comparative figure of $16.8 million to $10.1 million in 2009.
The Irish based company blamed the 40% drop in total revenue on $4 million of long term investments they have been making in the Asian market, as well as the loss of $1 million from William Hill taking its business to Playtech’s iPoker last year.
Despite the drop in the year on year quarterly figure, revenue has remained unchanged from the previous quarter signalling the company’s restructuring and cost cutting exercises are succeeding in stemming the long term drop in their revenue. CryptoLogic have proved themselves more than capable of making tough decisions in difficult market conditions and by cutting operating costs by an impressive 25% a year they have set the foundation for a return to greater profitability.
In addition, as Brian Hadfield, the CEO of Cryptologic explained, the loss of William Hill was offset by the company pursueing new licences and “Two of the biggest names in e-gaming, Sportingbet.com and Betfair, joined our customer roster in the second quarter alongside other giants such as 888.com and Party Gaming.”
CryptoLogic saw revenue from its core casino licensing business increase by 21% from the previous quarter from $6.4m to $7.7m. The company admitted that revenue had been adversely affected by delays in rolling out its games to licensees but expressed optimism that 40 of its games would be released by the 3rd quarter and at least 110 games at the end of the year.
Revenue from online poker was down from $1.9m the previous quarter to $0.5m, but cost cutting in this area has helped with the overall profitability of the company. Brian Hadfield, said: “Turning to poker, there is a general malaise in the market, validating our decision to move to a shared poker network with GTECH Corporation…we will be operating this business at a profit from the third quarter onwards.”