LONDON (ShareCast) - Internet games developer CryptoLogic saw charges relating to senior management changes reduce net income in the first quarter.
Net earnings before minority interests in the first quarter of 2008 dipped to $0.6m from $1.5m in the first quarter of 2007, though the 2007 results benefited from a one-off $4.5m benefit due to a change in the estimate of the future amount to be paid out in casino jackpots.
Net earnings per share on a fully diluted basis fell to 6 cents from 10 cents a year earlier.
Total revenue was down 5.1% at $19.3m in the first quarter from the levels seen in the fourth quarter of 2007. After normalising for unique items, revenue showed a modest quarter-on-quarter improvement and was up 21% on the first quarter of 2007.
The company has seen strong growth in casino game revenues from new slot-game offerings featuring the Marvel super-hero characters Spider-Man and the Fantastic Four. It also achieved significant revenue growth from the purchase of the gaming portal, www.casino.co.uk .
The company ended the quarter with $81m in cash, giving it “the resources and flexibility to enhance earnings through investments in gaming innovations and partnerships in key growth markets such as Asia,” the company said.
After reorganizing its business and returning to profitability in 2007 following the US prohibition on most forms of Internet gaming, CryptoLogic management believes the company is on track for significant expansion in 2008 and 2009.
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