Cryptologic’s First Quarter Results Fail to Impress

May 20th, 2011  |  Published in Casino News

Industry-leading online gambling software developer, Cryptologic, recently released their first quarter results. Despite Cryptologic’s pioneering efforts that helped create the online gambling industry, the company has had a bit of a rough patch lately. They have not released a new game since November 2010 when Sushi Express and Naughty Crosses hit the casinos. Some Cryptologic-powered online casinos are popular, therefore, the players are concerned with the company.

The Numbers

In a recent press release directly from Cryptologic, the total revenue increased by 9 percent to $6.0 million compared to $5.5 million in the last quarter of 2010. This revenue is a direct result of their hosted casino and branded games. Furthermore, the total expenses decreased from $0.9 million in the fourth quarter of 2010 to $0.6 million. Industry analysts feel this return to revenue growth is encouraging.

Deployment of Branded Games

The press release also mentioned the deployment of branded games to external online casinos is an area of concern. Only nine branded games were released in the fourth quarter despite the total number of games circulated to licensees being 179. Therefore, Cryptologic is working closely with these casinos to expedite the deployment of these branded slot games.

Supplier Dispute

In a financial report in March 2011, Cryptologic mentioned a dispute with an important supplier of games that led to the termination of their contract. Luckily the two companies have developed a new memorandum of understand and created an agreement that will continue their professional relationship.

Brand Licensor Dispute

The report also states that another dispute with a brand licensor has led to the termination of their agreement. Although complete details were not released and an amicable resolution has not been met, Cryptologic is looking to pursue litigation to protect its company rights.

Expected Updates

In this financial report, the online gambling industry was expecting an updated on the strategic review performed by Deloitte Corporate Finance. Unfortunately, no new information was released. The report specified, “The strategic review is ongoing and further announcements will be made as and when appropriate.” Additionally, online gamers were disappointed that no update was mentioned for Amaya which has improved Cryptologic’s stock.

It appears as if this pioneering online gambling software development company is slowly moving toward profits. Although the world is suffering from a financial crisis, Cryptologic managed to remain in the black which is more than most organizations can say.

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