CryptoLogic first quarter: revenue falls 25%
CryptoLogic has experienced a fall in its revenues, the software company's first quarter 2010 results reveal, blamed on subdued wagering and reduced contribution from major licensee William Hill Online.
CRYPTOLOGIC has experienced a fall in its revenues, the software company’s first quarter 2010 results reveal, blamed on subdued wagering and reduced contribution from major licensee William Hill Online (WHO).
Revenues fell to 7.6m (9.8m, £6.5m) in the period, a 25% drop year-on-year (YoY) from $10.1m during the same quarter of 2009.
Major licensee William Hill Online entered into a joint venture with rival software provider Playtech in October 2008, resulting in a fall in the revenue stream from WHO to CryptoLogic.
CryptoLogic posted a net loss of US$3.2m for the period, compared to a net loss of US$1.3m for the same quarter in 2009.
CryptoLogic chief executive Brian Hadfield said: “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.”
Highlights during the last quarter included the re-launch of Cryptologic’s new virtual casino lobby in March 2010, and a new licensing agreement deal with Betsson, while CryptoLogic-powered InterCasino launched its high-profile Into Space marketing campaign.
The company highlighted that its backlog of approximately 92 branded games is still to go live, and that it anticipates its full internet casino hosting suite for Betsafe.com to go live this current quarter.
Hadfield said he expected all these elements to provide key incremental revenues to CryptoLogic going forward.
“While subdued wagering activity impacted our revenues in the first quarter, the outlook for 2010 as a whole remains encouraging,” he said.