Online Casino Developer CryptoLogic Warns of Quarterly Results

CryptoLogic continues the bad financial reports for online casinos and their software suppliers with a warning before quarterly results are released.

On the heels of PartyGaming's announcement of declining third-quarter results, CryptoLogic has also told investors not to expect good news when its quarterlies are released November 5th. The online casino software says it is now forecasting revenues to be off almost a third from the same quarter last year.

Losses in online poker dominated PartyGaming's trouble, as competition floods the Internet poker market. But CryptoLogic is also reporting a significant decline in online casino revenue, an area that actually reported growth for PartyGaming.

CryptoLogic officials say revenues will be around $9.6 million, down 31 percent from 2008. The company does report a rise in licensed games over the last quarter, which should have a strong positive effect on fourth-quarter revenue.

CryptoLogic did say it will maintain its present course, and expects the company to return to profitability and growth, but perhaps at a slower rate than originally hoped.

The online casino software developer is listed on the London Stock Exchange.