BitDice Casino Quarterly Report: Q2 2018 Part 1
Financial Results Q2 2018
During the second quarter (1 April — 30 June) of 2018, BitDice Casino earned a net operating profit of USD 486 954 or USD 0,00487 per CSNO token.
Distributable profit of 70% amounted to USD 340 868 or USD 0,00341 per CSNO token.
Profitability somewhat improved during the quarter as the cryptocurrency market has demonstrated signs of bottoming out.
Players activity started to regain traction, improving both upper- and bottom-line figures.
Product segment overview
A total of USD 56 188 450 was wagered throughout the second quarter of 2018, registering a roughly 85% increase compared to a previous quarter. All the segments saw a notable uptick in volumes due to less negative sentiment on the market and BitDice’s advantageous standout against the rest of competitors.
Comparing to an average quarterly wager of last year, the Q2 2018 wager continued to fall further for almost all cryptocurrencies with few exceptions. A drastic uptick was noted in native CSNO tokens and LTC coins as players started to use those more often. We assume that part of the reason for increased playing with CSNO tokens was its sluggish liquidity on the secondary market. Some has obviously selected to play as an alternative to try their luck somewhere else. As regards to LTC coins, they continue to be used as a good alternative to BTC and ETH coins which historically have been the benchmarks of the cryptocurrency markets.
Average bet size continued to shrink in USD terms due to ongoing depreciation of cryptocurrencies and lower risk appetite among players with exception for CSNO tokens.
House gross income in terms of players lost bets amounted to USD 580 834,22; Dice segment has regained leadership and provided BitDice Casino with hefty positive flows, while Blackjack negatively impacted on net results by registering an unexpected loss of USD 96 537,96:
Margin wise, the picture remains volatile and deviates from our house edge benchmarks, yet in quite positive way during this quarter:
On average in Q2 2018, Dice segment margin amounted to positive 1,85%, Blackjack — to negative 0,48%, and Slots being the most stable at 9,61%. Dice games have notably improved the bottom line, while Blackjack suffered a drawdown on high volume of players’ activity . We admit the results may have a temporary effect and will likely come back to historical normal within time.
Clients deposits grew notably for LTC and CSNO coins. Some minor outflows were noticed in BTC and ETH. The largest inflow was noted in native CSNO tokens (almost 30x times) 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 93 880, which was almost identical 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 bonuses payouts:
Balance Sheet
At the end of Q1 2018, BitDice Casino’s 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.
At the end of Q2 2018, BitDice Casino’s assets slightly increased and amounted to USD 12 516 054 before dividend distribution:
For the same period, the overall crypto market capitalization decreased by around 3,5%.
Due to depressed CSNO price of the token, the current annualized dividend yield has skyrocketed from a mere 2% of last quarter to 21,3% as of this quarter results.
During this quarter BitDice Casino did not perform any hedge operations and did not manipulate with any of its assets. The firm maintains the view that the crypto market was way overpriced and the correction is still being unfold.
At the end of Q1 2018, Clients deposits with BitDice Casino amounted to USD 220 448,02.
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, i.e. 70% of the net profit earned pro rata its holding.
As a result of its Q2 2018 economic activity, BitDice Casino earned net operating profit in amount of USD 486 954.
Effectively, the total profit of USD 486 954 is subject to 70% profit sharing among CSNO token holders.
Every token holder is entitled to receive USD 0,00341 per token (0,341 cents per token) or ETH 0,00000765 respectively (converted at the rate of June 30, 2018). Dividends will be paid out from the outstanding ETH balance on the Casino’s book.
BitDice has made a snapshot of token holders as of June 30, 2018 and will distribute the dividends according to the list of CNSO token holders on June 30, 2018.
