Casino software provider Cryptologic announces improved results

The online casino software industry has had a hard time recently especially as a result of the US Government making online casinos illegal but Irish casino news has seen the latest second quarter results from Dublin based Cryptologic which shows a distinct turnaround from last year. The company announced in the Irish casino news that they made a pre tax profit of $456,000 in the quarter which although not a huge number is distinctly different from the $13.3 million loss in the equivalent period last year and takes first earnings before tax this year to $9000 compared to a $17.2 million loss last year; this is the first surplus reported by Cryptologic since 2008. We still consider Cryptologic to be an Irish company even though it is listed on the Canadian stock exchange and many of its operations are based overseas. Irish casino news notes that much of the turnaround is due to cost saving measures taken by new chief executive David Gavagan as operating expenses were halved compared to the same period last year. One of the major cost saving items was to move some operations from the London office to their Maltese base where software was already being developed. Cryptologic already called in Deloitte some months ago for a strategic review which some thought would be a trigger for the sale of the business but there were no further reports in the Irish casino news on this front. The company develops casino software and licenses it to online casino operators such as Paddy Power casino and 888 casino but there is plenty of competition out there so keeping costs down is essential. Consolidation in the casino software industry is not yet on the cards but it would interesting to see if one of the major players in the online casino industry chooses to  buy Cryptologic; Irish casino news will keep monitoring the situation..