CryptoLogic Calls in the Experts
CryptoLogic has not yet announced their second quarter results, but the information that has been released is not so positive. The online casino software provider had hoped that revenue would pick up, yet they are currently showing an overall loss in revenue.
Since the losses at CryptoLogic continue, their management has chosen to bring in consultants to help them deal with the situation.
The company released a trading update that show that expected figures for the second quarter of 2010, show that costs are definitely higher than had been projected, and that their total revenue will have gone down slightly when comparing it with their first quarter financial results.
CryptoLogic has been showing declining figures for some time now, and had thought that they were on their way out of the slump. The optimism that was expressed when the quarter one results were announced has disappeared, and concern has taken its place.
In order to attempt to remedy the declining financial situation, management at CryptoLogic have made the wise decision to bring in an outside consulting company that brings with it much experience in the gaming industry. The consulting firm will review the current operations, in order to use this knowledge to help enhance company strategy.
In the financial update from CryptoLogic, the notes state: “The Board and the Company acknowledge that the return to profitability is still contingent upon revenue growth, additional cost savings and a tight control of cash.”
The notes continued: “In light of continuing losses and the difficulty in forecasting results, a major consulting firm experienced in the gaming and betting industry has been retained to undertake a review of current operations with a view to assisting the Board in enhancing its strategy in the interests of stakeholders.”
CryptoLogic had scheduled the release of a full suite of their games to Betsafe in the second quarter, however, that was delayed, and is likely to be released this month, in July.
While many areas of operation did not increase their revenue, the CryptoLogic branded games saw its revenue grow by about 20% when you compare it to the first quarter of 2010. These figures were up even though many online casinos experienced dips in their income during the 2010 FIFA World Cup. Unfortunately, other revenue had significantly dropped.
CryptoLogic also noted that a non-executive director of their company, Geoffrey Finlay has resigned from the Board.
It is expected that the CryptoLogic second quarter results will be released on August 12th.
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