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Cryptologic Releases Positive Year End Results

8 March 2012 by CasinoListings

This story was published more than 11 years ago.

Online wagering software developer Cryptologic has released its fourth quarter and full year financial results for 2011, highlighting its first positive revenue report since 2006.

Key financial indicators for the full year 2011 were:

  • Total revenue rose to $27.3 million (2010: $26 million), the first increase since 2006

  • Profit of $6.5 million, including tax credit of $2.7 million and profit on sale of investment of $1.3 million, (2010: $21.6 million loss), the first annual profit since 2007

  • Total expenses reduced by 48% to $24.8 million (2010: $47.3 million)

  • Cash increased by 57% to $16.6 million (2010: $10.6 million)

  • Signed licensing deals for CryptoLogic games with several operators, including SkillOnNet, bwin and Loto Quebec

  • 212 branded games now live and producing revenue (2010: 170)

  • Instant Click, the company's rapid-deployment games suite, delivered first revenues after its launch by new licensees

Fourth Quarter 2011 key financial indicators were:

  • Profit increased to $5.8 million, including tax credit of $3.4 million and profit on sale of investment of $1.3 million, (Q3,2011: $1.1 million profit)

  • Total revenue was $7 million (Q3,2011: $7.2 million)

  • Total expenses $5.9 million (Q3,2011: $5.9 million)

The company's goals to return to profitability and stabilize the company were achieved last year. Because of these goals the company was able to report:

  • its first annual increase in revenues since 2006

  • its first annual profit and earnings per share since 2007

  • its first cash generation from operations since 2006

Currently Cryptologic is in acquisition talks with Amaya Gaming Group Inc. In February 2012 Amaya presented a cash offer of $2.535 per share, which is 110% more than the $1.21 per share that Cryptologic was listed at on March 24th, 2011, the day before the company announced its strategic review.

Commenting on his company's performance, Cryptologic Chairman and Interim CEO 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."