Granted that the third quarter is typically the slowest season for online gambling, CryptoLogic’s Q3 results were still disappointing on a number of levels.
To begin with, the company did not experience the seasonal uptick of demand usually seen in September and when it did, it was well below historic trends. For the quarter, the company reported a 36 percent decline in revenues to $6.1M. Despite the rollout of branded games by the company to new licensees, revenue numbers were lackluster.
The company is set to take a different approach, with a focus towards cutting costs. That’s one thing no employee wants to hear, it’s corporate talk for “ball cutting time”. The company announced that it will be taking an aggressive approach towards its restructuring and reduction of costs. Q2 results weren’t spectacular either, the company reported 33.5 percent decrease of that period to $6.7M and the results again were negatively impacted by a decrease in casino revenue.
So, it’s not much of a surprise that CryptoLogic is ready to get serious about stopping the bleeding, and tighten the screws on admin costs.