CryptoLogic predicts poor performance in Q2

CryptoLogic Ltd., the online gaming software developer has announced that they expect the second quarter results to show a negative performance reflecting a drop in revenues and an increase in operating costs. Additionally, the company has said that the performance for the rest of the year does not look encouraging.

CryptoLogic games are available at many casinos including Virgin Casino. The software developer has a range of slot games including classic slots like Aladdins Lamp, Triple Olives and Cash Caper, video slot games like Bejeweled slot game, Call of Duty 4 slot, Emerald Isle slot, Love Bugs slot and progressive slots including Doctor Love slot, Millionaires Club 2 slot and more.

In the first quarter of 2010, CryptoLogic had reported an operating loss of US$3.41 million while revenue was US$7.64 million. Casino revenues in the first quarter have not met expectations due to a shift in player preferences for Blackjack and Roulette. However, wagering and deposit levels have been steady through the month of June.

CryptoLogic Ltd. has offers a range of branded games including King Kong slot game, Thor slot and Batman slot game amongst others, and these have show an 20% growth despite some of licensees who experienced a negative impact due to the World Cup. Another setback was that the company was expecting to launch its full suite of casino games at Betsafe Casino in the second quarter which has not been pushed back till July.

The company said that its return to profitability is dependant on revenue growth, further cost saving measures being implemented and a tighter control on cash spends. Given the continuing losses and difficulties experienced in forecasting results, CryptoLogic has retained a major consulting firm experienced in the gaming and betting industry to undertake a review of current operations.

It is hoped that the external intervention will assist the Board in enhancing business strategy. The company also said that Geoffrey Finlay, a non-executive director, has resigned from the board due to personal reasons.

Written by Debbie Hall for Online Keno – your source for the latest online casino news