CryptoLogic Releases First Quarter Report

May 12, 2010 | News Category: Casino Software

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2009 was a busy year for the online gambling software provider, CryptoLogic. The first quarter of 2010 has shown some ups and downs. The gaming software provider’s financial reports show a lower income in the first quarter of 2010, however, branded games are up, and expenditure is down.

Revenue was down by about $2 million when comparing the last quarter of 2009 to the first quarter of 2010. Wagering activity was lower, and the company also dealt with the reduced contribution of a large customer.

CryptoLogic’s branded games have brought in more income each quarter for the last five quarters, with a rise to $1.3 million from Q4, 2009 at $1.2 million.

General expenses decreased by twelve percent, and operating expenses decreased by a whopping 36 percent when compared to the last quarter of 2009.

In the first quarter of 2010, CryptoLogic signed multi-year licensing agreements with both William Hill, Betsson, and Bet 24. The company released a new look online casino lobby, and also introduced a more streamlined process of registration. The first quarter saw a rise in live branded games, from 66 at the end of December 2009, to 92 at the end of March 2010. Six 3D games were released to CryptoLogic online casinos, and the company also helped with rebranding and relauching for a major licensee.

"While subdued wagering activity impacted our revenues in the first quarter, the outlook for 2010 as a whole remains encouraging," said Cryptologic’s President and CEO, Brian Hadfield.

As the financial report showed, Hadfield explained that the company’s operating costs were continuing to go down, and that revenue in the second quarter was already showing signs of going up when comparing it to the revenue received in the first quarter of 2010. The company has both new licensees, and a general increase in wagering activities.

Management also reported that branded games should begin to bring in more revenue soon, as they are released. The new branded games that have already been launched by licensees totals 108, which means that there are about 90 or more games that are currently backlogged.

Hadfield further commented: "The start of the World Cup soccer tournament in June provides short term uncertainty, however with a strong backlog of new business we expect our results to improve gradually as the year unfolds. As would be expected, the company continues to assess its revenue streams, costs, and strategic direction as it moves towards profitability."