Cryptologic Posts a Profit
Cryptologic, the online gambling group which was founded in Canada, and which now has its operations based in the country and in Ireland, posted a $500,000 profit for the first time since 2008.
The announcement was made during the release of Cryptologic's second quarter financial details, surprising analysts with the pre-profit tax amount.
Since the introduction of the Unlawful Internet Gambling Enforcement Act (UIGEA) in the United States in 2006, Cryptologic has fallen from a company employing 400 people to one that is barely scraping by with 100 employees.
However, Cryptologic has continued to climb steadily back and it was reported that its revenues rose to over 4% (to $7 million) in the last quarter, thanks to these efforts.
While skeptics may say that the $9,000 pre-tax profit in the first half of this year is a drop in the ocean of the billions generated by the online gambling industry, one needs to compare this amount to the $17.2 million loss incurred by Cryptologic to gain perspective of how far the company has come in one year.
Online Casino Games
The Toronto trading company also reported a surplus of $500,000 compared to a $13.3 million loss last year.
It operating expenses were $9 million overall in the first half of 2011, compared to $18 million last year.
The group continues to provide its excellent online casino games to licensees, including Betfair, Paddy Power and 888.
Nonetheless, management are still on track to sell Cryptologic to interested buyers who are willing to pay the right price and therefore hired Deloitte to head the sale of the business in its entirety or in part to the right buyer.
The Chairman of the group, David Gavagan continues to head Cryptologic, after the CE, Brian Hadfield left last year.
