CryptoLogic posts first revenue increase since 2006
Profits also up for first time since 2007.
CryptoLogic has announced a 5% rise in revenues for the year ending 31 December 2011, the first time the company has seen growth in its income since 2006.
Revenues rose to $27.3m, compared US$26m in FY 2010, helping Cryptologic record a full-year profit of $6.5m, after a loss of $21.6m last year “ the company’s first annual profit in five years. This came after the group posted its first quarterly profit for three years in the second quarter of the financial year.
Despite a 3% drop in Q4 revenues, down to $7m, the company posted a strong increase in profit, leaping up 427% from $1.1m to $5.8m quarter-on-quarter.
CryptoLogic, which has agreed a recommended cash offer to be acquired by Canadian games developer Amaya Gaming, attributed the group’s turnaround to the restructuring programme initiated in August 2010, which saw the company focus on increasing revenues from its casino and branded games products, and maintain tight controls on costs. This resulted in total expenses for the year falling 48% to $24.8m from $47.3m.
Branded games revenue for the year increased to $6.9m, 25% year-on-year, and hosted casino revenues rose from $22m to $23.4m for the year. This was aided by an $0.8m reduction in liabilities after the company settled its court case against Marvel for breach of contract in September 2010.
The company has also signed deals with a number of significant partners, including an agreement to supply Loto-Québec’s egaming division Société de Jeu Virtuel du Québec with a portfolio of casino games. This was followed by a licensing agreement with NeoGames, which will see a selection of CryptoLogic’s games supplied to NeoGames’ customers including Bet365 and Sportingbet.