CryptoLogic announced losses for the third quarter of 2008
Author: CasinoSystems // Category: Casino NewsOne of the leading companies developing software for Internet casinos, CryptoLogic Limited, announced its financial results for the quarter ended 30 September 2008. The company announced a loss of $ 5.9 million, which is the main reason that led Cryptologic to the recent strategic cooperation with GTECH Corporation, the biggest shareholder of Boss Media.
The financial result forced CryptoLogic to significantly reduce its dividend, to $ 0.03 per share, a decrease of 75%. In the past, the company had paid a dividend of $ 0.12 per share.
“The continued payment of dividends, even in a difficult year for the company, expresses the confidence of the board’s in CryptoLogic strategic planning , which will restore its growth and profitability in 2009,” said the company in a press release.
The company published earning of $ 14.0 million in its latest financial report, a 16.4% decrease compared with the second quarter of 2008 and 19.7% compared to the same period in 2007. Operating costs for the third quarter (until 30 September 2008) amounted to $ 16.5 million, or 117.5% of revenue.
The increase in operating expenses is primarily due to losses of $ 4.2 million in foreign exchange recorded during the quarter, after the U.S. dollar appreciated about 10% compared with the British pound and the euro, at a time when the company had significant amounts in these currencies. With the cooperation with GTECH, the company hopes to reduce operating expenses to $ 12 from $ 15 million in 2009.
“In such a difficult year for the company and the industry, we recognize that we must perform even better - and that is why CryptoLogic puts a direct implementation plan to achieve its profitability objectives and strategy growth in 2009, “said Brian Hadfield, chairman and CEO of CryptoLogic.
“CryptoLogic casinos offer attractive campaigns to new customers and our branded games have won the confidence of some of the largest companies in the world. We have already reduced our operating costs in an effort to strengthen cooperation in the field of poker. ”
With the cooperation with the GTECH international poker network which is imminent in 2009, Cryptologic will give licensees and players access to an even bigger network, while limiting the annual expenditure.
This move is just one part of the aggressive policy of CryptoLogic to increase revenues to a central axis to concentrate on online casino operators and branded games.
Cryptologic also announced agreements with the Gaming Media Group Limited, the Sky Betting and Gaming, and GigaMedia Limited, and also presented a new site for Betjacks, one of the new European customers of the company. This site came to online on 4 November.
CryptoLogic’s online casino are by far the most profitable businesses and the company expects a significant increase in revenue in the next year. The company came to an agreement with 10 new customers in 2008 and is close to cooperate with even more.
