Performance improvement at Cryptologic

Cryptologic’s financial situation changes in the 2nd quarter of the year.

After Cryprologic’s downturn report on financial and operational matters, the online gaming industry is on alert. The results of the performance in the 2nd quarter of the year has just been revealed by Cryptologic. Everybody related to Cryptologic should now rest assured of the present status.

The financial results for this 2nd quarter show that the total revenue increased to $7 million, $1 million more than the previous quarter. Total expenses did not go over $6.5 million, therefore Cryptologic reported a total income before taxes of $0.5 million, while in the previous quarter it has reported a loss. This encourages the leading software provider to focus on driving revenues and keep the expenses limited tightly.

One of the reasons for the increase in revenue was the liability reduction against revenues caused by a dispute with an important game provider. A key licensee hosted by the casino turned into a higher contribution, even though it was not appointed by Cryptologic. There was also an increase in revenue from branded games, as 6 new branded games went live in this quarter and generated revenues to date to 185 from 179 at the end of the first quarter. This refers to Cryptologic’s licensees obtaining games from Cryptologic’s portfolio. Online poker generated a revenue loss.

Another important event in the 2nd quarter was the win of the Millionaires Club progressive jackpot worth $4.2 at Sky Vegas Casino. This resulted in a decrease in provisions for jackpots  and decrease in cash and cash equivalents. The progressive jackpot wins are paid by Cryptologic to avoid disputes between players and casinos.

There has also been an update in commercial agreement, as mentioned before, Cryptologic had a dispute with a game provider. A binding agreement between Crytpologic and the game provider has been signed for taking the commercial relationship forward. Still, the dispute with the brand licensor is still unsolved. The outcome of the review conducted by Deloitte Corporate Finance is eagerly waited. The review is ongoing and details will be provided along.