Cryptologic posts pretax profits of nearly $500,000 for Q2

A DUBLIN-based internet gaming software specialist, Cryptologic, has reported profits before tax of almost $500,000 in the second quarter of the year, the first surplus it has recorded since 2008.

The company said yesterday that revenues in the three months to the end of June rose just over 4 per cent to $7 million.

Operations generated a surplus of $431,000, which was augmented by interest earnings of $25,000, leaving it with pre-tax profits of $456,000 for the three-month period. It recorded a loss of $13.3 million during the comparable period last year.

The group’s figures also show a $9,000 pre-tax profit for the first six months of the year. First half losses in 2010 were $17.2 million.

Revenues during this period were $13 million, 7 per cent down on the $14 million it recorded in the first half of 2010.

Cryptologic develops online casino-style games and licences them to other operators. Clients include 888, Betfair and Paddy Power.

It is listed on the Toronto stock exchange but is headquartered in Dublin.

Four months ago, the company announced that it had hired Deloitte to carry out a strategic review that could lead to the sale of some or part of the business. It had no update on this process yesterday.

A year ago, chairman David Gavagan took over as interim chief executive, when the incumbent, Brian Hadfield, left the business.

The company has reined in its costs since then. Operating expenses in the first half of the year were $9 million, compared to $18 million during the same period last year.

Much of the cost-cutting was undertaken in the final three months of last year. It involved moving operations from its London office and consolidating them at its base in Malta, where its software is developed.