BitDice Casino Quarterly Report: Q4 2019
Financial Results Q4 2019
In the fourth quarter of 2019, BitDice Casino ended up with net operating loss of USD 52 218 or USD 0.00052 per CSNO token. Gross income was slightly positive USD 10 993.
Profitability has remained under the pressure by subdued activity of the players and negative margins of the largest performing segments. Along with generally low players activity, BitDice Casino was able to lower operating and administrative expenses by 32% compared to previous quarter.
Crypto sentiment has started to improve at the end of the quarter, but the mood remained negative during the period. Bitcoin somewhat outperformed the rest of the crypto assets during the quarter, and effectively has shown the largest positive Y-o-Y return among the list of our acceptable playing currencies.
Total assets at the end of Q4 2019 amounted to USD 8 049 848
Product segment overview
Both in USD terms and in crypto, wager continue to decrease in Q4 and totaled USD 1 660 460. Dice segment traditionally amounted for the largest chunk of the total wager (62%), and BlackJack followed with 35% share. The rest of the segments were staying in small single digits, giving back their segment shares to BlackJack.
Some positive wager growth was noted in ETH BlackJack and ETH Sports. Among other currencies the wager continued to slump, except for CSNO Dice, where players preferred placing bets instead of holding the tokens.
The average wager dynamic was mostly in line with the overall wager metric. In USD terms the average wager continued to drop quarter on quarter, except for Sports betting and CSNO Dice.
The growth in number of bets was uneven. Mixed signals this time were noted in Dice segment that previously had experienced growth due to micro betting. The effect of micro betting is wearing off. The drastic slump impacted BitAces across all the currencies.
Gross income in terms of players lost bets has totaled USD 10 993. All segments have ended near break-even. Yet relatively better numbers were demonstrated by BlackJack. Dice segment failed to give traditionally good results and ended up with some minor losses.
In the fourth quarter, BitDice Casino experienced further decline in gross margins across its largest segments.
Sports betting and BitAces produced the most volatile margin numbers for the last quarters, while BlackJack was the only one staying positive.
In crypto terms, margins were scattered unevenly with largest swings noted in BitAces and Sports.
Clients deposits amounted to USD 87 415 in total. Positive change was offset by deprecated currencies in BTC, ETH and LTC and resulted in further decline in USD terms.
Running Costs
In the third quarter, operating and administrative expenses amounted to USD 63 211 — lowered from the previous quarter and getting closer to historic average.
Some part of the costs related to productions was capitalized and did not go through the P&L statement.
Balance Sheet
As of the end of the Q4 2019, book assets deflated further by 11% due to a broad crypto weakness and amounted to USD 8 049 848. In the same quarter, crypto currencies lost more than 11%.
The company did not perform any hedging activity and has been fully exposed to the market, except its dollar reserves.
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 Q4 2019 economic activity, BitDice Casino incurred net operating loss of USD 52 218.
Effectively, the total loss of USD 52 218 is not subject to profit sharing among CSNO token holders and will offset the upcoming future results along with Q3 accumulated loss of USD 87 008
BitDice Casino Quarterly Report: Q4 2019
Throughout Q4 2019 our team has vigorously continued to work on the development of the fifth iteration of our product. Research has been conducted to identify new prospective regions to operate in, meetings with potential partners held, development and creation of marketing assets commenced. Extended analytics data has been gathered and the activities crucial to the launch of a new, upgraded version of BitDice have been carried out to the greatest extent possible.
BitDice 5.0
The preparation process is being carried out as planned. After our completion of the UX/UI templates, we’ve made a weighted decision to change our contractor company. Although this decision did cause a certain delay to initial launch dates, eventually it will certainly have a positive influence on the final version of the product.
As of now, dozens of web pages had been designed with others soon to follow. Every element of the new design, regardless of how small, is being double-checked to meet UX/UI best practices requirements with the ultimate goal for the product to reach the highest standards of user-friendliness. After that, the elements are tested in focus groups.
Although there is a slight deviation from the dates that were set initially, we expect the launch to take place at the beginning of Q2 2020.
Expansion to LATAM
In relation to the massive market potential and perspectives in Latin America, we’ve decided to put our focus on this region (alongside with the beforementioned South-Eastern Asia region).
We’ve conducted research on distinct local policies for various countries, as well as contacted and met several companies that offer their payment processing and marketing services in this region. Also, we’ve analyzed the methods available for organic advertising and sought out which are the most effective. In addition, we’ve held meetings with several game developers that do operate in that region to find out which games are the most interesting to local markets.
Marketing assets
Because of the new product design as well as the expansion to other regions, fresh marketing materials have been created to cover our needs. In order to be able to carry out a massive marketing campaign at a new product launch, several landing pages had been created to reflect local specifics of new markets as well as to pinpoint the advantages our new design offers.
Analytics
We’ve gathered fresh data on online gambling to make the process of task prioritization for various countries smoother. The data will also be used to improve the targeting of our marketing materials in the future, as well as the identification of the most effective marketing methods for every country we are to target. In addition, we shall also utilize it to analyze the necessity of the integration of local payment systems as well as for pinpoint adjustments to operations.
Other
Several industry-related events have been attended, including AGS in Taiwan and SAGSE in Argentina. A number of MoU had been signed with companies that process fiat payments as well as various marketing agencies.
