Cryptologic has announced their financial results for Quarter 2, 2011 (ending 30th of June). They have reported profits before tax of nearly $500,000 – the first time they have announced positive numbers since 2008.
Total revenue increased over 4% from $6 million in Quarter 1, 2011 to $7 million in Quarter 2, 2011. Total expenses for Quarter 2, 2011 were at $6.5 million – the same as Quarter 1, 2011. Profits (or income) before tax were at $0.5 million for the second quarter – a contrast to a $0.4 million loss in Quarter 1. Quarter 2, 2010 was terrible with Cryptologic losing $13.3 million.
The report from Cryptologic also highlighted the big win back in June whereby a 37 year old casino player from Newcastle won an amazing £2.6 million jackpot playing Cryptologic’s Millionaires Club Progressive slot. The player made a simple 90p bet and hit the life-changing jackpot after winning several progressive bonus rounds.
Unfortunately, cash for Quarter 2 was at $12 million which is $2.5 million down from Quarter 1. This was due to a $3 million decrease in the jackpot (described above). This won’t dishearten the management at Cryptologic as they have recorded $9,000 pre-tax profits for the first half of 2011 compared to a $17.2 million loss for 2010.
The statement from Cryptologic said that the board is “encouraged by the performance in the quarter” whilst they are focusing on “driving revenues further while managing costs tightly to enhance shareholder value”. In March, Cryptologic appointed Deloitte Corporate Finance as a financial advisor to help review the company’s strategy. They have clearly had an impact and will continue to work with Cryptologic.
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