BUSINESS

Poor financial results lead to possible Cryptologic sale

TAGs: Cryptologic, financial results

Following less than stellar financial results which saw net losses down 42.5% with a final quarter net loss down to $0.8m from Q2’s total of $12.7m and revenue decreased from $39.8million to $26million; CryptoLogic has launched a strategic review that may result in a sale of the company.

It was a year that saw Cryptologic undergo a restructuring process that lead to a reduction in a significant portion of the company’s staff and marked the fifth consecutive year of contraction for the company.

Even though Cryptologic signed a licensee deal with bwin at the end of last year, CryptoLogic said in a release on Friday that its review is at an early stage and will consider a number of strategic options “including the possibility of an offer being made for the company or a disposal of part of the business.”

The company’s board of directors is however stressing that at this point there is no certainty that any offer will be forthcoming. But that won’t stop the speculation. The company has already hired the high profile Deloitte Corporate Finance as financial adviser to assist with the process.

In London, its shares (LSE:CRP) rose nearly 12 per cent after the announcement before North American markets opened, gaining 10 pence to 95 pence. On the Toronto Stock Exchange, they closed Thursday at C$1.20 — up 16 cents.

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