Chartwell Technology, the Canadian Internet gambling software provider has reported revenue growth of 26 percent in Q2:2008, with US$7 million in revenues setting a new company record.
The company announced its unaudited financial results for the three and six months ended April 30, 2008.
Q2 highlights included:
* Corporate revenue record for a quarter at $7.0 million, a 26 percent increase from the second quarter in 2007 and an 21 percent increase from Q1:2008.
* Net income of $1.1 million compared to $0.1 million in the second quarter of 2007.
* Cash flow from operations, before working capital adjustments, of $2.0 million as compared to $0.8 million in the second quarter in 2007 – a 143 percent increase
* EBITDA of $2.2 million as compared to $0.6 million in the second quarter of 2007, a 237 percent increase
Three months ended April 30, 2008
Revenue for the second quarter 2008 was $7.0 million (Q2:2008 – $5.6 million). The year over year increase of 26 percent was from consistent growth in casino license fees of 15 percent and an 88 percent increase in poker license fee revenue. In addition to the increased license fees, Chartwell now includes revenue from Elite Club Management N.V. (ECM), the acquisition of which was completed early in the quarter.
The total software development and support, sales and marketing and general and administrative expenses combined were comparable to the same period in 2007, despite the additional staff and overhead costs associated with ECM. Net earnings for the second quarter were $1.1 million. Company spokesmen claimed that the substantial increases in EBITDA and cash flow from operations demonstrates the strong earning power from established operations while Chartwell continues to invest in new products and services to meet demand.
Software development and support expenses were $2.8 million and $5.1 million in the three and six months ending April 30, 2008 respectively, compared to $2.4 million and $4.8 million for the same period of fiscal 2007.
For the three and six months ended April 30, 2008, sales and marketing expenses decreased by 16 percent and 18 percent to $600 000 and $1.3 million from $700 000 and $1.6 million in the same periods of 2007.
"The second quarter was an excellent one for Chartwell" said Alan Richter, CFO of Chartwell. "We've added licensees, deployed 13 new casino games and completed development on four more. We have made additional investments in the services we provide to our customers, and we are accomplishing all of this while controlling our expenses and thereby improving all of our key financial metrics."
Chartwell continued to maintain a strong balance sheet through positive cash flow and maintaining positive working capital. At April 30, 2008 the Company had $18.8 million of cash and short-term investments compared to $15.1 million at October 31, 2007.