Leading online casino games developer has retained a ‘major consulting firm’ as total revenues for the second quarter experienced a ‘slight decline’ while costs grew.
Friday 23rd July 2010
Leading online casino games developer CryptoLogic Limited has released a trading update for the second quarter of the year and announced that total revenues had experienced a ‘slight decline’ when compared to the previous three-month period.
The Dublin-based firm revealed in May that revenues for the whole of 2009 had decreased by 35 percent year-on-year to $39.8 million due, in part, to ‘lower wagering activity across the industry’.
CryptoLogic has also stated that costs for the second quarter of 2010 would be ‘greater than expected’ resulting in an operating loss for the period that is to be higher than the preceding three-month cycle while revealing that its outlook for the year is ‘much less encouraging’ than when it released its previous financial results.
“Despite the World Cup, casino revenues showed a modest gain quarter-on-quarter but were lower than anticipated due to a substantial swing in player preferences for blackjack and roulette,” read the update from CryptoLogic.
“Wagering and deposit levels held steady through most of June. Additionally, CryptoLogic's full suite of casino games due to be launched at Betsafe in the second quarter has been delayed until July.
“Branded games revenues grew by approximately 20 percent compared to the first quarter of 2010 despite some licensees experiencing a negative impact from the World Cup. Other revenues declined significantly.”
The firm stated that it would be releasing its final financial results for the second quarter of 2010 on August 12 while stating that Geoffrey Finlay had resigned as a Non-Executive Director for ‘personal reasons’.
“The board and the company acknowledge that the return to profitability is still contingent upon revenue growth, additional cost savings and a tight control of cash,” read the update.
“In light of continuing losses and the difficulty in forecasting results, a major consulting firm experienced in the gaming and betting industry has been retained to undertake a review of current operations with a view to assisting the board in enhancing its strategy in the interests of stakeholders.”
