Yearly revenues tumble for CryptoLogic

Leading online casino games developer CryptoLogic Limited has released its financial results for 2009 showing a 35 percent drop in revenues to $39.8 million due, in part, to ‘lower wagering activity across the industry’.

The Dublin-based firm stated that its bottom line was also affected by ‘adverse currency factors and a reduced contribution from a key licensee’ while revealing that it made a net loss of $35.5 million for 2009, which reflected $24.8 million in non-recurring charges for ‘asset impairments and restructuring to align the company's costs with its revenue base’.

The firm’s total annual recurring cost base, which comprises operating, administrative, finance and amortisation expenses, fell by $20.6 million for the year to $55 million while its deal to merge its poker network with GTECH Corporation saw it eliminate the expenditures associated with operating a standalone business.

CryptoLogic stated that revenues from branded games increased by $2.5 million year-on-year to $2.8 million and now accounts for 7.1 percent of its total revenues ‘despite slower-than- anticipated roll-out by licensees’. Its total licensee base has expanded by 20 over the previous twelve months to more than 30 and now includes leading operators such as Betfair, SportingBet, ToteSport and Virgin Games while it has recently signed deals with DC Comics and Paramount Pictures to develop new branded games.

For the fourth quarter, CryptoLogic stated that revenues from its branded games rose by 51.7 percent year-on-year to $1.2 million while it doubled the number of these units in production to 66.

“Last year was a tough year as a number of adverse factors including a global economic downturn overshadowed the company's progress in implementing its innovative new strategy to reduce costs and return to growth,” said Brian Hadfield, President and Chief Executive Officer for CryptoLogic.

“We have entered 2010 in better shape with a substantially reduced cost base that will continue to be managed tightly. At the same time, new business momentum remains encouraging as branded games continue to roll out and hosted casino licensees implement new initiatives.

“With new licensing activity staying strong and the overall online casino and gaming market showing some improvement, we look to the year with cautious optimism.”