BitDice Casino Quarterly Report: Q1 2019 Part 1

Financial Results Q1 2019

During the first quarter (1 January — 31 March) of 2019, BitDice Casino suffered a net operating loss of USD 81 400 or USD 0,00081 per CSNO token. It was the first time when BitDice experienced negative results for the quarter.

Profitability was largely affected by a whale roller who was extremely lucky in pocketing large winning strikes during the quarter. The event, apparently, was as rare as an uninterrupted sequence of positive quarter returns since the ICO was conducted.

After a sharp downfall of the crypto currency market, the asset prices have largely stabilized and even have shown a good sign of revival. This positively impacted our balance sheet and pushed the book value of assets slightly above the previous levels, even despite the current loss.

Players activity continued to pick up across all major segments. Apart of BitAces segment that was successfully launched last time, we kick-started Sports segment expecting it to add up more newcomers.

Product segment overview

A total of USD 5 282 139 was wagered throughout the first quarter of 2019.

US dollar wise, the wager shot up by 60% compared to previous quarter and grew relatively uneven across the games. The big spike was largely due to one single player who wagered with Doges primarily in Dice games.

If discounted for this lucky player, the wager growth remains mostly depressed, with Slots and BitAces somewhat getting the traction.

The average wager in USD continued to suffer with just few exceptions. We see some positive moves in BitAces segment where stakes have spiked and for LiteCoin in general being wagered more generously compared to other currencies. Technically, this is due to the fact that the Litecoin has roughly doubled in value, so not much a surprise to see here.

The number of bets continued to grow compared to the previous year’s average quarter as the effect of micro betting seems still intact. We should admit the effect is not evenly distributed, though there are certain positive trends getting shaped for low revenue segments, such as Slots and BitAces, where we see both wager and number of bets are growing together.

For the first time ever, gross income in terms of players lost bets was negative USD 14 866,21. The house lost mainly in Dice segment affecting the overall income performance. The loss in Doges was somewhat offset by positive inflows with other currencies, yet the balance could not get positive. The loss was mostly caused by a whale roller who was extremely lucky playing with Doges throughout the quarter.

BitDice Casino’s margins were scattered a lot among segments. The most negative impact was registered in Dice, while the rest of the segments were holding relatively fine. This time around, a whale player managed to pocket good winning strikes and pushed margins lower in momentum. We expect the situation will get back to normal in the upcoming quarters.

In USD terms, the margins deteriorated for Dice games but remained relatively solid among other segments.

As regards to the clients’ deposits, the uptick was registered in DOGE and CSNO, while the other currencies experienced an outflow.

Running Costs

In the first quarter of 2019, BitDice casino incurred a total cost of USD 66 534, which was almost in line with the cost of previous quarter. The cost structure remains traditionally well-balanced with salaries being the major expense.

Balance Sheet

As of the end of the Q1 2019, our assets appreciated by around 5% due to some relive rally in crypto markets followed a gigantic downfall of Q4 and amounted to USD 7 751 861:

Due to the loss in the current quarter, the annualized dividend yield went negative. The company did not perform any hedging activity and has been fully exposed to the market, except its dollar reserves. Dollar reserves were helping us mitigate negative crypto impact, but in the up-trending market it tampers assets appreciation. As it became a good way of practice, we refrain from giving any views on the macro trends in crypto currency markets.

At the end of Q1 2019, Clients deposits with BitDice Casino amounted to USD 89 558.

Distributable Profit

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 Q1 2019 economic activity, BitDice Casino suffered net operating loss in amount of USD 81 400.

Effectively, the total loss of USD 81 400 is not subject to profit sharing among CSNO token holders.