Cryptologic Releases 2019 Third Quarter Financial Results
CRYPTOLOGIC RELEASES 2019 THIRD QUARTER FINANCIAL RESULTS
TORONTO, Ontario, November 27, 2019 -- Cryptologic Inc. (“Cryptologic” or the “Company”)
(CSE:CRY) today announces its financial results for the quarter ended September 30, 2019. Selected
financial information of the Company for the three month and nine month periods ended September 30,
2019 and 2018 and the year ended December 31, 2018 is set forth below:
Cryptologic mined a total of 602.91 Bitcoin in the three months ended September 30, 2019, at an average
price per Bitcoin for the quarter of $13,706. The Company achieved an Adjusted EBITDA1 of $3.9 million,
or $0.17 per outstanding share, resulting in an Adjusted EBITDA Margin1 of 44% for the three months
ending September 30, 2019. The Company’s cost of revenue, which includes electricity cost, contractors’
fees and general facility operating costs, but excludes non-cash depreciation of mining and infrastructure
equipment, resulted in an average cost per Bitcoin mined of $6,937, an increase of $2,494 or 67% from
$4,443 for the three months ended June 30, 2019. The increase in the cost of mining a Bitcoin is
attributable to the increase in network difficulty corresponding to an increase in network hashrate resulting
in fewer coins mined for the period on a per miner basis. Average network difficulty for the three months
ended September 30, 2019, was 10.08 trillion as compared to 6.87 trillion for the three months ended
June 30, 2019.
The Company reported net income of $2.1 million for quarter on revenue of $8.7 million. For the nine
months ended September 30, 2019, the Company reported net income of $1.9 million on revenue $23.6
million.
The financial statements for the three months ended September 30, 2019 and the related management’s
discussion and analysis (“MD&A”) are available on Cryptologic’s SEDAR profile at www.sedar.com.
For information or interview please contact:
Jordan Greenberg
Chief Financial Officer
(647) 715-3707
1 Refer to the “Non-IFRS Measures” section of this news release.
Three Months Ended
September 30,
Nine Months Ended
September 30,
Year ended
December 31,
2019 2018 2019 2018 2018
Revenue $ 8,690,484 $ 8,230,518 $ 23,554,470 $ 10,939,694 $ 18,079,005
Net income (loss) and comprehensive
income (loss) 2,141,330 (3,437,552 ) 1,867,898 (55,328,776 ) (74,252,959 )
Adjusted EBITDA 3,864,861 3,022,290 9,340,636 3,454,175 5,018,658
Adjusted EBITDA margin 44 % 37 % 40 % 32 % 28 %
Adjusted EBITDA per share 0.30 0.51 0.73 0.66 0.84
Total assets 28,472,513 64,847,400 28,472,513 64,847,400 17,973,697
Total liabilities 38,541,134 47,297,695 38,541,134 47,297,695 29,710,012
Basic and diluted net income (loss)
and comprehensive income (loss)
per common share $ 0.17 $ (0.55 ) $ 0.15 $ (10.61 ) $ (12.98 )
About Cryptologic Inc.
Cryptologic Corp. is currently a cryptocurrency mining company that is focused on divesting its crypto
mining assets and exploring acquisition opportunities in sectors outside of cryptocurrency mining.
Cautionary Note Regarding Forward-Looking Information
Certain statements in this press release, including statements with respect to the Company’s position to
enter other aspects of cryptocurrency mining, contain forward-looking information which can be identified
by the use of forward looking terminology such as "believes", "expects", "may", "desires", "will", "should",
"projects", "estimates", "contemplates", "anticipates", "intends", or any negative such as "does not
believe" or other variations thereof or comparable terminology. No assurance can be given that potential
future results or circumstances described in the forward-looking statements will be achieved or will occur.
By their nature, these forward-looking statements necessarily involve risks and uncertainties, including
the risk that costs will be higher than anticipated reducing margins, that expense reductions will not be
realized, the risk that the price of power to the Company increases and other risks and uncertainties
discussed herein, that could cause actual results to significantly differ from those contemplated by these
forward-looking statements. Such statements reflect the view of the Company with respect to future
events and are based on information currently available to the Company and on assumptions, which it
considers reasonable. Management cautions readers that the assumptions relative to the future events,
several of which are beyond management's control, could prove to be incorrect, given that they are
subject to certain risk and uncertainties, and that actual results may differ materially from those projected.
Other factors which could cause results or events to differ from current expectations include, among other
things, the impact of general economic, industry and market conditions. Management disclaims any
intention or obligation to update or revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by applicable securities laws. The reader is
cautioned not to place undue reliance on forward-looking information. The Canadian Securities
Exchange has not reviewed, approved or disapproved the content of this news release.
Non-IFRS Measures
Certain terms used in this press release, such as Adjusted EBITDA and Adjusted EBITDA Margin, are not
measures defined under International Financial Reporting Standards (“ IFRS”) as prescribed by the
International Accounting Standards Board, do not have standardized meanings prescribed by IFRS and
should not be compared to or construed as alternatives to profit/loss or other measures of financial
performance calculated in accordance with IFRS. Adjusted EBITDA and Adjusted EBITDA Margin as
computed by the Company may not be comparable to similar measures presented by other issuers. The
Company uses these measures to better assess the Company’s underlying performance and provides
these additional measures so that investors may do the same. Further details on non-IFRS measures are
set out in the Company’s MD&A, which is available on the Company’s SEDAR profile at www.sedar.com.