CryptoLogic Warns of Weak Third Quarter Trading

Online casino software developer CryptoLogic Limited has warned that it expects third quarter revenues to be approximately $9.6 million, 31% lower than the same period last year, following significant declines in wagering activity in its core casino offering and poker.

CryptoLogic said that while the third quarter was traditionally the slowest season of the year for gaming operators, the usual upsurge in revenues seen in September was well below historic trends.

As a result CryptoLogic said that it expects to report revenues of approximately $9.6 million, a 31% decrease on the same period last year, with a trading loss of $3.4 million compared to a loss of $5.9 million in Q3 2008.

The company said that there was a strong take-up of branded CryptoLogic games by new licensees during the quarter, expanding its total number of branded games on the market to 33. Revenues from new games launched during the quarter will begin to come through during the fourth quarter of 2009.

CryptoLogic said that it remains confident of its strategy to return the business to profitability and long term growth, but at a slower rate than previously anticipated.

The company will reports its third quarter results on Thursday November 5th 2009.

Shares in CryptoLogic Limited (Co. Profile) (LSE:CRP) are currently trading at 392.50 pence per share in London this morning.