CryptoLogic Shares Hit 52-Week Low on Q3 Results

Despite increasing revenue contributions from its branded games portfolio, CryptoLogic Limited said Friday that third quarter revenues fell 32% to US$9.95 million as a result of €˜sluggish' wagering activity and the delayed roll-out of games by new licensees.

CryptoLogic said that revenues from branded games continued to grow month on month to reach $780,000 in the third quarter while poker revenues fell from $3.2 million a year ago to $500,000.

Hosted casino revenues also decreased in the third quarter to $7.1 million, down from $10.1 million a year ago and $7.7 million in Q2 2009.

With third quarter operating expenses of $13.0 million, down from $21.1 million in the same period last year, CryptoLogic posted a net loss of $3.2 million or $0.25 per share.

For the nine month period ended September 30th, revenues totalled $29.9 million, a fall of 40% year-on-year, resulting in a net loss of $10.7 million or $0.81 per share.

"Despite a disappointing third quarter, CryptoLogic's business strategy is delivering tangible progress, albeit at a slower pace than anticipated," said Brian Hadfield, CryptoLogic's President and CEO.

"With a lower cost base, the largest customer roster in CryptoLogic's history and our third consecutive quarter of increased revenue from branded games, we remain focused on executing our plan - and returning to profitability and long term growth."

The company also today declared a dividend of $0.01 per share for the third quarter, down from $0.03 in the first two quarters of 2009. The dividend will be paid on December 15, 2009 to shareholders of record of CryptoLogic Limited and CryptoLogic Exchange Corporation as at December 1, 2009.

Shares in CryptoLogic (Co. Profile) (LSE:CRP) are trading at 237.50 pence per share in London this morning, a new 52-week low.