BitDice Casino Quarterly Report: Q1 2018 Part 1
Financial Results Q1 2018
During the first quarter (1 January — 31 March) of 2018, BitDice Casino earned a net operating profit of USD 77 457 or USD 0,000775 per CSNO token.
Distributable profit of 70% amounted to USD 54 220 or USD 0,00054 per CSNO token.
Profitability dropped notably due to the collapse of the cryptocurrency market in general; this put further downside pressure on gamblers appetite and caused significant drop in the wager amounts.
To minimize negative impact on the bottom line, operating expenses were cut by more than 30% compared to the previous quarter.
Product segment overview
A total of USD 30 321 911 was wagered throughout the first quarter of 2018. All the segments saw a drastic downtick in volumes due to multiple negative factors, including increased competition in the sector and the jittery on the cryptocurrency markets that crushed values by more than a half.
Q1 2018 wager fell sharply for almost all cryptocurrencies except CSNO, which were played with more often compared to the previous quarter. Dogecoin demonstrated some upside in BlackJack as an outlier from the string of the negative performing assets.
Average bet size also continued to shrink in USD terms due to severe depreciation of cryptocurrencies and lower risk appetite among players.
House gross income in terms of players lost bets amounted to USD 176 950,76; BlackJack and Slots segments positively impacted on net results, while Dice segment has registered unexpected loss of USD 31 504,61.
Margin wise, the picture was somewhat volatile and deviated from our house edge benchmarks:
On average in Q1 2018, Dice segment margin amounted to negative 0,13%, Blackjack 3,52%, and Slots 8,03%. BlackJack and Slots have notably improved the bottom line, while a high-turnover Dice games have suffered further declines. We believe the results carry a temporary effect and will likely come back to historical normal within time.
Clients deposits grew selectively. The biggest outflow was noted in LTC. The largest inflow was noted in native CSNO tokens as more players preferred to wager with their stakes.
Running Costs
In the first quarter of 2018, BitDice Casino incurred a total cost of USD 99 494, which was 30% less compared to the previous quarter. The company constantly seeks optimizing cost structure to improve margins during compressed revenue period.
The majority of the cost was attributed to team salaries and legal fees associated with ongoing process of obtaining a license:
Balance Sheet
At the end of Q4 2017, BitDice Casino assets after dividends payout amounted to USD 17 342 449:
At the end of Q1 2018, BitDice Casino assets shrank by 34% and amounted to USD 11 443 537 after dividend distribution. For the same period, the overall crypto assets capitalisation declined by roughly 55% in USD terms.
Current dividend yield dropped below 2% as of result.
During the quarter BitDice Casino did not perform any hedge operations and did not manipulate with any of its assets. The firm strongly believes that the crypto market was way overpriced and the correction was necessary for the next phase of organic growth.
At the end of Q1 2018, Clients deposits with BitDice Casino amounted to USD 226 492.
Distributable Profit
According to BitDice Casino profit distribution policy, every token holder that possesses a balance with value greater than 1 is entitled to receive quarterly dividend, 70% of the net profit earned pro rata its holding.
As a result of its Q1 2018 economic activity, BitDice Casino earned net operating profit in amount of USD 77 457.
Effectively, the total profit of USD 77 457 is subject to 70% profit sharing among CSNO token holders.
Every token holder is entitled to receive USD 0,00054 per token (0,054 cents per token)
BitDice has made a snapshot of token holders as of March 31, 2018 and will distribute the dividends according to the list of CNSO token holders on March 31, 2018.
