Software supplier Cryptologic Ltd. saw revenue increase 9% to $6m in Q1, suggesting the extensive restructuring the company underwent in 2010 was not in vain. That said, Cryptologic still posted a loss of $0.6m for the quarter, but that’s an improvement over Q1 2010’s $0.9m loss. Hosted casino revenue increased to $5.2m (from $4.9m) and branded games revenue was $1.5m (up slightly from $1.4m). Nine new branded games went live in Q1, bringing Crypto’s total number of games generating revenues for licensees to 179. The company continues to be debt-free and maintains cash and cash equivalents of $14.5m, boosted $3.9m this quarter by movement in income taxes receivable and payable. Definitely helps when you list all 179 branded games as ‘dependents.’
In March, Cryptologic was reportedly looking for someone to acquire their business. Canada’s Amaya Gaming Group was tipped as a likely lad after word leaked that it had taken a 5% ownership stake in Cryptologic. Instead, Amaya has offered $22.8m in stock and cash to acquire Canuck gaming software outfit Chartwell Technology. Amaya president/CEO David Baazov called the move “a significant step for Amaya in our strategy to accelerate growth in the regulated interactive gaming industry.” Chartwell president/CEO Darold Parken said the fusion of the two companies will create an entity with “a significantly expanded product range, delivery channel capability and market reach.” Chartwell shareholders will meet in July, and if 2/3 say ‘aye’, Chartwell shares will be delisted and the company will continue to run under current management as a wholly-owned subsidiary of Amaya.