|Leading online gambling software provider CryptoLogic has blamed the passage of America’s Unlawful Internet Gambling Enforcement Act (UIGEA) legislation for the drop in its third quarter revenues.|
The Canadian company announced total revenues of $17.5 million for the quarter, a drop of 37 percent from last year’s $27.7 million, with incorporated casino activities bringing in $11.4 million from last year’s $16.3 million. It stated that poker income was almost halved from last year’s $8.3 million to $4.8 million while its net income amounted to $2.4 million.
These figures come despite the Toronto-based company’s strategic change of focus to the European market following the passage of UIGEA, which prohibits financial transactions by Americans with online gambling companies.
However, CryptoLogic continues to have one of the industry's strongest balance sheets and ended the quarter with $85.4 million in net cash despite the purchase of Casino.co.uk, a popular European gaming portal.
'CryptoLogic strengthened every part of its business in the third quarter and this improved our top-line revenue, our bottom-line profit and our competitive position in both Europe and Asia,' said Javaid Aziz, President and Chief Executive Officer for CryptoLogic.
'We unveiled new games, launched new sites, acquired new assets and strengthened CryptoLogic's relationships with some of the world's blue-chip gaming and entertainment brands. The result is new stability, profitability and sustainability for CryptoLogic's growth in the long-term.'
For the fourth quarter, the company stated that it expects revenues of between $17.5 and $18.5 million with net earnings of around three million dollars.