Cryptologic Q2 Results

CryptoLogic Announces slight Revenue Growth and Reports Profit in Q2 2011!

CryptoLogic announced its financial results for the second quarter ended June 30, 2011 and were up from Q1.

Q2 2011 Highlights:

Total revenue increased to $7.0 million (Q1 2011: $6.0 million)
Total expenses held at $6.5 million (Q1 2011: $6.5 million)
Income before tax of $0.5 million (Q1 2011: $0.4 million loss)
Millionaires Club jackpot win of $4.2 million paid in June 2011
Cash of $12.0 million (Q1 2011: $14.5 million)

The Board is encouraged by the performance in the quarter and continues to focus on driving revenues further while managing costs tightly to enhance shareholder value.

Operating and Financial Review:

Total revenue after amortization of royalties and games in Q2 2011 increased to $7.0 million (Q1 2011: $6.0 million). Revenue in the quarter benefited from a reduction of $0.8 million in liabilities previously provided against revenue through the resolution of a dispute with a significant supplier of games.

Hosted Casino:

Revenue from Hosted Casino increased to $5.7 million in Q2 2011 (Q1 2011: $5.2 million), reflecting a higher contribution from a key licensee and $0.3 million related to the above resolution.

Branded Games:

Revenue from this segment rose to $2.1 million in Q2 2011 (Q1 2011: $1.5 million), including $0.5 million related to the above resolution. Six new branded games went live in the quarter taking the total number of games rolled out by licensees and generating revenues to date to 185 from 179 at the end of the first quarter.

Poker and Other:

Poker and Other revenue amounted to $0.2 million in Q2 2011 (Q1 2011: $0.4 million).

Expenses:

Operating expenses decreased to $4.5 million in Q2 2011 (Q1 2011: $4.7 million).

General and Administrative expenses rose to $1.6 million in Q2 2011 (Q1 2011: $1.4 million).

Income before tax for the quarter amounted to $0.5 million compared with a loss before tax of $0.4 million in the first quarter.

Balance Sheet and Cash Flow:

Cash and cash equivalents as at June 30, 2011 amounted to $12.0 million (March 31, 2011: $14.5 million). The decrease in cash during Q2 2011 of $2.5 million is primarily due to a $3.0 million decrease in jackpot provisions, following a significant jackpot win during the quarter, and a decrease in other trade payables and accrued liabilities of $1.8 million, partially offset by cash generated from operations before changes in non-cash operating items of $0.7 million and decreased prepayments of $1.0 million. The Company continues to be debt-free.