CryptoLogic shares plunged and its CEO quitted

The company’s wider than expected loss was affected by a decline in total revenue, which had plummeted from the 2009 second quarter figure of us$ 10.14 million to us$ 6.74 million. Although branded game revenue had risen from us$ 1.3 million in the first quarter to us$ 1.5 million in the second quarter, casino revenue stayed largely unchanged at us$ 5.8 million, while the company’s poker revenues continued to slide dramatically from us$ 1.3 million the previous quarter to us$ 0.7 million in the second quarter.
 
In addition, CryptoLogic’s Operating, general & administrative and amortization costs had risen to us$ 12.9 million from us$ 11 million in the first quarter.

Commenting on the poor results, a company spokesman, as reported by egrmagazine said: “In the light of continuing difficult trading conditions, a further restructuring is being implemented to reduce significantly the cost base including a reduction in the total workforce by the end of fourth quarter 2010.

“Following a review by a leading firm of industry consultants announced previously, a number of measures are being implemented to improve the performance of the hosted casino business.”

On receiving the second quarter results, the market reacted badly to the news with shares in the company losing over a third of their value. The 165 cents per share now offered on the LSE is a new 52 week low and a long way off the us$ 703.2 per share price reached in September 2009.