International edition
September 19, 2020

Following us$ 12.7 million second quarter losses

CryptoLogic shares plunged and its CEO quitted

(Ireland).- CryptoLogic’s CEO, Brian Hadfield, announced his resignation after the firm posted a record second quarter loss of us$ 12.7 million. It had previously posted a us$ 3.2 million loss for the first quarter, and the huge loss for the second quarter of us$ 12.7 million was enough to have Chairman David Gavagan stepping in as an interim CEO in order to replace the former CEO of two years.

T

he 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.

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