Trading and Business Update
July 15 2010 - 2:00AM
Marketwired
CryptoLogic Limited (TSX: CRY)(TSX: CXY)(NASDAQ: CRYP)(LSE: CRP), a
global developer of branded online betting games and Internet
casino software, announces today that it expects Q2 2010 Total
Revenue to show a slight decline over Q1 and that Total Costs will
be greater than expected. As a result, the Operating Loss in Q2
will be higher than Q1 and the Company's outlook for the year is
much less encouraging than at the time of the Q1 results
announcement.
Despite the World Cup, Casino Revenue showed a modest gain
quarter on quarter but was lower than anticipated due to a
substantial swing in player preferences for Blackjack and Roulette.
Wagering and deposit levels held steady through most of June.
Additionally, CryptoLogic's full suite of Casino Games due to be
launched at Betsafe in Q2 has been delayed until July. Branded
Games Revenue grew by approximately 20% compared to Q1 2010,
despite some licensees experiencing a negative impact from the
World Cup. Other Revenue declined significantly.
The Board and the Company acknowledge that the return to
profitability is still contingent upon revenue growth, additional
cost savings and a tight control of cash.
In light of continuing losses and the difficulty in forecasting
results, a major consulting firm experienced in the gaming and
betting industry has been retained to undertake a review of current
operations with a view to assisting the Board in enhancing its
strategy in the interests of stakeholders.
Finally, it should be noted that, for personal reasons, Mr.
Geoffrey Finlay, a non-executive director, has resigned from the
Board.
It is anticipated that CryptoLogic will announce its Q2 results
on Thursday, August 12th.
CRYPTOLOGIC FORWARD LOOKING STATEMENT DISCLAIMER:
This press release contains forward-looking statements within
the meaning of applicable securities laws. Statements in this press
release, which are not historical are forward-looking statements
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. The words "believe",
"expect", "anticipate", "estimate", "intend", "may", "will",
"would" and similar expressions and the negative of such
expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain these
identifying words. Forward-looking statements are based on certain
factors and assumptions including expected growth, results of
operations, performance, business prospects and opportunities,
foreign exchange rates and effective income tax rates. While the
company considers these factors and assumptions to be reasonable
based on information currently available, they may prove to be
incorrect. Forward-looking statements involve known and unknown
risks and uncertainties that may cause actual results, performance
or achievements of the company to differ materially from the
anticipated results, performance or achievements expressed or
implied by such forward-looking statements. Risks related to
forward-looking statements include, without limitation, risks
associated with the company's financial condition, prospects and
opportunities, legal risks associated with Internet gaming and
risks of governmental legislation and regulation, risks associated
with market acceptance and technological changes, risks associated
with dependence on licensees and key licensees, risks relating to
international operations and risks associated with competition.
Additional risks and uncertainties can be found in the company's
Form 20-F for the fiscal year ended December 31, 2009 under the
heading "Item 3 - Key Information - Risk Factors" and in the
company's other filings with the US Securities and Exchange
Commission and Canadian provincial securities commissions. Given
these risks and uncertainties, readers are cautioned not to place
undue reliance on such forward-looking statements. Forward-looking
statements are given only as at the date of this release and the
company disclaims any obligation to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise, except as otherwise required by
law.
Contacts: CryptoLogic Brian Hadfield Chief Executive Officer
+353 1 234 0400 Corfin Public Relations Neil Thapar, Alexis Gore or
Harry Chathli (UK media only) +44 207 596 2860
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