CryptoLogic Sees Drop In Third Quarter Revenue

CryptoLogic, an online gambling provider of software has seen a drop in revenues for their third quarter and they are placing blame on the Unlawful Internet Gambling Enforcement Act (UIGEA), which was passed in October 2006.

 

The third quarter in 2006 for the company brought in $27.7 million but this year is much different. With a 37 percent drop to $17.5 million this quarter, CryptoLogic cannot be pleased. Even though shortly after the UIGEA passage, CryptoLogic took steps to focus more on the European market that apparently was not enough.

 

"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," stated Javaid Aziz, CryptoLogic's Chief Executive Officer.

 

"We unveiled new games, launched new sites, acquired new assets and strengthened CrytoLogic's relationships with some of the world's blue-chip gaming and entertainment brands," explained Javaid Aziz. "The result is new stability, profitability and sustainability for CryptoLogic's growth in the long term."

 

It is expected that the fourth quarter is expected to see revenues around $17.5 million to $18.5 million and their net earning should be somewhere in the ballpark of three million dollars.