BitDice Casino Quarterly Report: Q3 2019 Part 1 – BitDice Casino
In the third quarter of 2019, BitDice Casino ended up with net operating loss of USD 87 008 or USD 0.0087 per CSNO token. Gross income was nearly flat, just a mere positive USD 5 968.
Profitability was affected by subdued activity of players and fat-tail pay-off in BitAce’s wager. Operating and administrative expenses remained elevated, with legal expenditures being the largest spending item.
To improve liquidity for CSNO token conversion, we continued to run buyback program as we did in the previous quarter.
Crypto sentiment appears to be mixed from the last quarter. With plenty of big-scale swings, Bitcoin kept outperforming the rest of the crypto assets, and effectively has become the only asset showing a positive Y-o-Y return among the list of our acceptable playing currencies.
As regards to the players’ activity, it continued to slump. Our newly introduced Sports betting product was gaining traction in terms of wager, but it is too early to evaluate trends.
Total assets at the end of Q3 2019 amounted to USD 9 082 396
Both in USD terms and in crypto, wager significantly decreased in the third quarter and totaled USD 2 325 092. Dice segment amounted for 61% of the total wager, BlackJack — 23%, followed by the rest staying traditionally in single digits.
BitAces segment was the only one to shoot up sharply in BTC and LTC wager. Another notable pick up was noticed in Dice CSNO wager. Sports segment, which took a quick start last quarter, slowed down.
The average wager in USD terms has dropped in line with an overall wager. Exceptional dynamics was noted only in Bitcoin BitAces and Litecoin Sports betting. Depreciation of cryptocurrencies during the quarter might somewhat justify the slump, but the drop for majority of the segments was heavier that the drop in the rates themselves.
The number of bets continued to grow for Dice segment if compared to the previous year average as the effect of micro betting is still intact. It remains unevenly distributed though. BitAces (except for BTC wager) and Spots clearly underperformed.
Gross income in terms of players lost bets totaled USD 5 968. All major segments resulted in small positive results, except for BitAces that dragged the gross income back to unchanged levels.
In the third quarter, BitDice Casino experienced worse than expected margins across the segments, with few exceptions (Sports betting).
BitAces produced a stunning negative 20% margin, even a bigger drop than previous quarter surprise. All other segments remained in positive territory.
Looking in crypto terms, margins were scattered unevenly with largest swings noted in BitAces.
Clients deposits were slightly changed and amounted to USD 110 537,94 in total.
In the third quarter, operating and administrative expenses amounted to USD 92 976 — lowered from the previous quarter, yet still elevated in comparison to historic average.
Higher expenditures have been related to business expansion activities such as finalizing integration of fiat payment systems, expanding to new markets of Southeast Asia, and strengthening presence in social media.
Balance Sheet
As of the end of the Q3 2019, book assets deflated by 25% due to a broad crypto rally correction and amounted to USD 9 082 396. In the same quarter, bitcoin price dropped by 27%, all other cryptocurrencies lost even more.
The company did not perform any hedging activity and has been fully exposed to the market, except its dollar reserves. We also continued to support CSNO tokens with occasional buyback programs. The company does not want to explicitly provide any schedule or details of such programs to avoid any anticipated front running.
According to BitDice Casino profit distribution policy, every token holder that possesses a balance with a value greater than 1 is entitled to receive quarterly dividend, i.e., 70% of the net profit earned pro rata its holding.
As a result of its Q3 2019 economic activity, BitDice Casino incurred net operating loss of USD 87 008.
Effectively, the total loss of USD 87 008 is not subject to profit sharing among CSNO token holders and will offset the upcoming future results.
Published at Mon, 11 Nov 2019 15:58:01 +0000
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