Cryptologic CEO resigns after record losses

Posted by Steve Ruddock on Aug 16, 2010 Posted in Poker Industry News | No Comments »

PokerNewsDaily.com is reporting that after poor second quarter results online casino and poker operator Cryptologic announced CEO Bryan Hadsfield has resigned from the company, and will be replaced on an interim basis by Cryptologic Chairman David Gavagan.

Hadsfield time as CEO has been filled with a seemingly never-ending period of restructuring, with the result being quarter after quarter of losses. Just as worrisome as the lost revenue –$3.2 million in the first quarter of 2010, followed by a record loss of $12.7 million in quarter 2—is that CryptoLogic’s overhead has risen in the same period of time.

Perhaps the beginning of CryptoLogic’s troubles occurred in 2009 when CryptoLogic made the decision to end its online poker operations, a move that sent many of their premiere card-rooms running to other online poker networks and new online poker rooms to geta new poker bonus.

In a statement given to egrmagazine a CryptoLogic spokesman had this to say regarding the company’s recent poor performance: “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. Following a review by a leading firm of industry consultants announced previously, a number of measures are being implemented to improve the performance of the hosted casino business.”

We shall see if more restructuring is the answer for CryptoLogic, or if the company will continue to falter.