Leading online casino software developer reveals a 31 percent year-on-year drop in revenues for the third quarter to $9.591 million.
Tuesday 24th November 2009
Leading online casino software developer CryptoLogic Limited has released its financial results for the thrid quarter of 2009 showing a 31 percent year-on-year drop in revenues to $9.591 million.
Revenues were also $500,000 less than those for the previous quarter with CryptoLogic citing ‘sluggish wagering activity and a slower-than-expected rollout of games by new licensees’.
However, CryptoLogic's ‘build-once-license-often’ strategy delivered solid growth from branded games for the third consecutive period with revenues from this segment increasing by 46 percent quarter-on-quarter to $780,000. This was helped by the number of games on customer sites rising to 33 from 13 in the previous period and only three in the first quarter of 2009. The firm also revealed that further launches since the end of the quarter have increased the total number of games on the market to 50.
CryptoLogic stated that hosted casino revenues decreased by $600,000 from the second quarter of 2009 to $7.1 million due primarily to two jackpot wins on Millionaires Club, one of the company's most popular games, while those from poker remained static at $500,000.
All of this saw the firm post a net loss before minority interests of $3.4 million, an improvement over $6.3 million for the second quarter, but its net cash decreased by $5.4 million to $28.4 million.
”Despite a disappointing third quarter, CryptoLogic's business strategy is delivering tangible progress, albeit at a slower pace than anticipated,” said Brian Hadfield, President and Chief Executive Officer for CryptoLogic.
“With a lower cost base, the largest customer roster in CryptoLogic's history and our third consecutive quarter of increased revenues from branded games, we remain focused on executing our plan and returning to profitability and long-term growth.”
