In the second quarter, BitDice Casino achieved net operating profit of USD 139 106 or USD 0.00139 per CSNO token. Offsetting the previous quarter loss of USD 81 400, the profit entitled for distribution has totaled USD 57 706 or USD 0.00058 per CSNO token.
Profitability was affected by the same insatiable roller who let our profits suffer last time. Along with it, an uptick in operating and administrative expenses weighed on the bottom line.
Due to the sizable win and withdrawal of proceeds by the lucky player, our Doge reserves were depleted, and we were forced to convert some of our bitcoins to doges without much room for selecting good timing.
General sentiment in crypto has notably improved. Yet the improvement has mostly benefited the value of bitcoin and affected altcoins to a lesser extent. For this very reason, many believe that the spike in the value of crypto assets might be short-lived.
As regards to the players’ activity, it remained roughly unchanged. Our newly introduced Sports betting product was gaining traction in terms of wager, but it is too early to evaluate trends.
Product segment overview
A total of USD 9 300 421 was wagered throughout the second quarter of 2019. The wager increased by more than 75% in USD terms in comparison to the previous quarter but was rather subdued if counted in crypto.
The wager increased unevenly. Dice segment expanded to 80% share from 66% a quarter ago. Sports segment started to gain traction and grew up to 4%. We attribute the growth in Dice segment to an outlier Doge player who generated a big deal of wager during the quarter.
The average wager in USD terms grew biggest for stakes in bitcoin. Good dynamics was also noted in small segments such as BitAces and Sports. Appreciation of crypto currency rates was among the main drivers for average wager growth.
The number of bets continued to grow compared to the previous year average as the effect of micro betting appears to be still intact. It remains unevenly distributed though. BitAces have lost positive trend seen in the previous quarter, yet Sports segment experienced spikes across all the selected currencies.
Gross income in terms of players lost bets totaled USD 267 227. All major segments resulted in positive results, except for BitAces and Sports that showed minor losses. Negative Doge results were absorbed by profits generated by the entire Dice segment. As explained earlier, the Doge loss was mostly caused by a whale roller who was extremely lucky playing Dice throughout the quarter.
This quarter BitDice Casino was rewarded with bigger margins this quarter for our high-volume-activity segment products.
In particular, Dice margins have jumped up to 2.9 % measured in USD from being negative 1.44% in the previous quarter. Margins for BlackJack also improved from 1.48% to 3.76%. Somewhat disappointing were results for low-volume-activity segment products: BitAces and Sports.
Clients deposits continue to shrink for all crypto currencies except LTC and CSNO. Drastic withdrawals were seen in BTC and DOGE.
In the second quarter, operating and administrative expenses amounted to USD 128 121 — almost doubled compared to the first quarter.
BitDice Casino started to aggressively expand its team and added 5 new members. It now has a physical presence and rents an office to accommodate full-time employees.
As of the end of the Q2 2019, book assets appreciated by 58% due to a broad crypto rally and amounted to USD 12 142 196:
Thanks to the positive results, we were able to offset the previous quarter loss and ended up with a net profit entitled for distribution. The annualized dividend yield has got back to positive 3.6%. The company did not perform any hedging activity and has been fully exposed to the market, except its dollar reserves.
During this quarter, we were forced to increase Doge reserves and converted BTC 18.73 into DOGE 33 042 669 at an average rate of 0.000000567 to meet client’s request for withdrawal. Our DOGE reserves were fully depleted due to abnormal sequence of winning strikes by the player.
On top of that, we have initiated conversion of CSNO tokens on site. As result we have bought CSNO 823 342 at an average rate of BTC 0.000004 per token.
The balance sheet reflects the conversion adjustments among crypto assets and includes changes in clients’ deposits. At the end of Q2 2019, Clients deposits with BitDice Casino amounted to USD 118 119.
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 Q2 2019 economic activity, BitDice Casino achieved net operating profit of USD 139 106.
The loss suffered in previous quarter offsets this amount by USD 81 400 and makes the remaining profit of USD 57 706 subject to 70% sharing among CSNO token holders.
Effectively, every token holder is entitled to receive USD 0.0004 per token (0.04 cents) or equivalent in ETH. Dividends will be paid out from the outstanding USD balance on the Casino’s book.
BitDice has made a snapshot of token holders as of June 30, 2019 and will distribute the dividends according to the list of CSNO token holders on June 30, 2019.