Following CryptoLogic’s Q2 financial announcements which reported only a marginal improvement including a total revenue rise to $6.978M compared with $6.739M last year, CryptoLogic management appointed Deloitte Corporate Finance as a financial advisor to help sure things up.
There was certainly nothing to boast about in the financial results, and it was clear that underperformance was the case. For instance, hosted casino revenue was $5.7m, branded games accounted for $2.1m, while ‘poker and other’ produced a mere $200k.
It’s pretty much been a vote of no confidence from Thousand Hills Limited, a 19.9 percent shareholder in the online gambling software developer.
Thousand Hills is now considering its options with regard to its stake in the company. It has been reported by Reuters that an acquisition offer for part of CryptoLogic and its assets was a possibility according to the company’s shareholders.
At 19.9 percent, Thousand Hills has a significant stake in a business that they believe is both undervalued and underperforming.
The plain truth is that Thousand Hills believes that CryptoLogic’s current business strategy has not resulted in the creation of value for shareholders, and that’s a direct jab at CryptoLogic’s management team.