Mar
27th

Cryptologic May be Ready to Sell

The online gaming software group, Cryptologic, said this week that it is ready to consider a sale of the group – either in part or as a whole. Cryptologic will work together with Deloitte Corporate Finance to create a strategic review of the business, following staggering losses of €14 million in 2010. According to Cryptologic, the review “will consider a number of strategic options, including the possibility of an offer being made for the company or a disposal of part of the business.”

Analysts believe that no bidders have actually approached Cryptologic in a request to sell the group, and it is not sure if its strategic review will attract any buyers.

Cryptologic has several firm business deals with some of the big names in the online gambling business, including Ladbrokes, Betfair and Paddy Power. However, the group has been struggling to raise its profits and get back into the black since 2009. Falling revenues have prevented this until now.

Last year, Cryptologic announced dramatic moves to cut costs and succeeded in doing so, by $30 million. However, the group wants to focus on growing revenues, after sales were down to $26 million – a drop of a third from the previous year’s $39.8 million.

Cryptologic was founded in Canada although it moved its corporate headquarters to Ireland in 2007. It still maintains its key software development operations in Canada. Cryptologic is listed on the Toronto Stock Exchange and shareholders will be updated about any changes or strategic decisions.

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