Major shakeup as CryptoLogic suffers record losses

Online casino software provider CryptoLogic did not experience a good second quarter ot the year. They suffered from record losses and as a result there has been a major shakeup and one of the world’s leading online software providers.

Their first quarter was not ideal, there was a loss of $3.4 million, and whilst this was poor performance it was forgiven. However the record $12.7 million that was lost in the second quarter has cost one of their top executives his job.

CEO Bryan Hadfield left his job as soon as the figures for the second quarter were released, in his place the Chairman of CryptoLogic, David Gavagan has taken over the role on an interim basis.

A company spokesman said, “In the light of continuing difficult trading conditions, a further restructuring is being implemented to reduce significantly the cost base including a reduction in the total workforce by the end of Q4 2010.”

There are a number of different factors that contributed to this record loss. The operating costs of the company increased whilst revenue from poker and other sources dropped. In the past William Hill was a huge contributor to CryptoLogic’s revenue, but in 2008 they partnered with Playtech and dropped CryptoLogic’s software.

How Spears was appointed Chief Financial Officer in May before the second quarter figures were released. He began his new job last week and will not be facing a mammoth task as he tries to turn the company’s finances around. CryptoLogic are responsible for some of the top branded games available on the internet gambling market. These branded games are still extremely popular and even within the disastrous second quarter there was an increase in revenue brought in by the games, up to $1.5 million from $1.3 million in the first quarter.