The Cost Of Moving To Dublin Plus A Drop In Revenues

The publicly-listed gaming software developer and turnkey provider CryptoLogic, whose partners include World Poker Tour, William Hill, Sun Poker, InterPoker and Playboy, has reported a 46.5 percent decrease in revenues for the second quarter of 2007.

The Dublin-based company suffered a second quarter loss of $2.6 million, and said the after-tax loss was due principally to the $4 million in reorganization costs related to establishing the corporate headquarters in Ireland. The company accelerated and has now completed its reorganization.

Reorganization costs for the quarter were $2.5 million higher than previously planned. The overall cost of the reorganization will be US$0.9 million higher than the estimated US$8.5 million, which Cryptologic says is due to a non-cash option expense related to the hiring of the new chief executive, Javaid Aziz.

The company generated revenues of $16.2 million during the second quarter and said the decrease from $30.2 million in the second quarter of 2006 was “due largely to the impact of the U.S. prohibition of Internet gaming.” However, the company remains optimistic about its future.

Javaid Aziz, CryptoLogic's President and CEO said in a statement, “CryptoLogic took major steps this quarter towards a return to growth and profitability - with an increase in operating revenue, and a decrease in operating costs. Since December, CryptoLogic has launched 11 new customer sites, and we have four more in the pipeline - including two for Holland Casino, and one for World Poker Tour. With the confidence of huge global brands, good growth from our European base and encouraging progress in Asia, CryptoLogic’s outlook improves every day.”

The company reported that its financial strength continued to be reflected in its balance sheet. The reduction from $103.8 million in Q1 is the result of two large payouts totaling $12.1 million from the company's highly popular and profitable cumulative jackpots.

Back to Lastest Gambling News
Back to Gambling News Archive
Back to Gambling News - August 2007 Archive