Cryptologic Cuts Costs, Regains Profitability
Posted on: August 13th, 2009 8:00 am | By: Jeremy SchruteCryptologic had a novel idea. Their revenues were down so they did something about it. The online game designer has seen a long-term fall in its revenue so they decided to restructure the company and cut costs. By slashing operating expenses by 25% each year and expanding their gaming licenses, Cryptologic has stopped the free fall and has put themselves in a position for a more profitable future. The company reported a 40% drop in total revenue, due in part to long-term Asian investments and William Hill heading to Playtech’s iPoker, prompting the cost-cutting measures.
Profits have been slowed by a slower than expected release of their new games, but by cutting operating costs and signing those new contracts, seemingly one a week for a while, Cryptologic has dug themselves out of a hole and leveled out their revenue. The new licensing resulted in a 21% growth in revenue over the last quarter over its casino licensing business.
Cryptologic can stand as an example for other companies. They did what companies used to do before they started asking the government to save them. They looked at their situation and determined what needed to be done to become profitable. If only GM had been capable of that.
Tags: Cryptologic, iPoker, online casino, online gambling, Playtech, William Hill
August 23rd, 2009 at 9:00 am
The slower than expected release of their new games is due to two issues:
1. They don’t have anyone left to make the games working there
2. They don’t have any new games planned.
All of the talent that was at Cryptologic has left of their own accord due to very irresponsible management teams. They no longer have a back office infrastructure to speak of, their QA departement is incapable of detecting the smallest bugs and the IT departement now consists of individuals who cannot perform the duties asked of them. It’s a sad thing to see a mighty industry leader reduced to shell of it’s former self.
August 25th, 2009 at 7:55 am
[...] one of Microgaming’s biggest rivals, recently underwent dramatic restructuring and cost cutting to become profitable in the tough economy. It might be wise for Microgaming to follow suit. The [...]