Cryptologic Posts First Revenue Growth Since 2006
Cryptologic, the Canadian-Irish developer of online betting games and internet gambling software, announced its results for the full year of 2011, showing its best figures in a six year period.
Highlights of the year included the fact that Cryptologic's total revenue rose to $27.3 million in 2011, the first increase since 2006, compared to $26.0 million in 2010.
Cryptologic's profits were $6.5 million in 2011, which included a tax credit of $2.7 million on profits on the sale of investment of $1.3 million. These numbers were in stark contrast to the dismal figures of a $21.6 million LOSS in 2010. This was also the first annual profit recorded since 2007.
The Canadian gambling group said that its earnings per share amounted to $0.47, compared to a $1.53 loss per share a year before. It's cash reserves increased by 57% to $16.6 million - up from $10.6 million in 2010.
According to the financial statement regarding Cryptologic's revenue growth, it was shown that the group signed licensing deals for Crypto games with a number of operators, including Bwin.Party digital entertainment, Loto Quebec and SkillOnNet.
Compared to the 170 recorded in 2010, there are now 212 live branded games generating revenues on Cryptologic's platform.
Cryptologic Q4 Highlights
The financial report also included Cryptologic's performance in the fourth quarter of 2011, which showed that its profit rose to $5.8 million in Q4, including a tax credit of $3.4 million and profit on the sale of investment of $1.3 million.
Total revenue in Q4 was $7 million, while total expenses remained the same as in the third quarter at $5.9 million.
Cryptologic CEO Impressed with Numbers
Chairman and interim Chief Executive Officer of Cryptologic, David Gavagan said: "While trading conditions remained challenging throughout the year, our strategy and restructuring and the commitment of our people over the past 18 months have returned the business to profit for the first time since 2007, and delivered the first annual increase in revenues and cash for five years."
Cryptologic continues to focus on increasing its revenues and maintaining strict control over costs, following a restructuring program which was initiated in 2010.
In February, the Montreal based Amaya Gaming Group announced its intentions to purchase Cryptologic for $35.8 million, essentially paying around $2.52 per share.
Amaya shareholders were recommended to accept the offer, which presented an attractive premium to the group's share price.
