Cryptologic Fights The Good Fight


12th May, 2011 at 07:39:13

Severe cost cutting and major restructuring in effort to halt declines

Online gambling software provider Cryptologic Limited has posted its financial results for the first quarter ending March 31 2011 reporting a growth of 9% in total revenue for the period.

CryptoLogic's management team introduced severe cost cutting and major restructuring measures last year to halt declines and stabilise the business resulting in an encouraging return to revenue growth over the last quarter in 2010.

Quarter 1 2011 Highlights include:

- Total revenue increased 9% to $6.0 million (Q4/2010: $5.5 million), reflecting higher contribution from key licensees

- Hosted casino revenue increased to $5.2 million (Q4/2010: $4.9 million)

- Branded games revenue rose to $1.5 million (Q4/2010: $1.4 million)

- Total expenses of $6.5 million (Q4/2010: $6.1 million)

- Loss reduced to $0.6 million (Q4/2010: $0.9 million)

- Net cash of $14.5 million (Q4/2010: $10.6 million), primarily related to a movement in income taxes

- Poker and other revenue remained static at $0.4 million in Q1 2011 (Q4 2010: $0.4 million).

Cryptologic reports the appointment of Deloitte Corporate Finance to assist in an advisory role with a strategic review of the company.

Readers may recall previous reports on the Montreal-based online gambling software firm, Amaya Gaming, rumoured to possibly be making a run for the company when it recently purchased a 5.05% stake in Cryptologic.

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