An internet gaming software specialist, Cryptologic, has reported profits before tax of almost $500,000 in the second quarter of the year, the first surplus it has recorded since 2008.

The company said yesterday that revenues in the three months to the end of June rose just over 4 per cent to $7 million.

Operations generated a surplus of $431,000, which was augmented by interest earnings of $25,000, leaving it with pre-tax profits of $456,000 for the three-month period. It recorded a loss of $13.3 million during the comparable period last year.

The group’s figures also show a $9,000 pre-tax profit for the first six months of the year. First half losses in 2010 were $17.2 million.

Revenues during this period were $13 million, 7 per cent down on the $14 million it recorded in the first half of 2010.

Cryptologic develops online casino-style games and licences them to other operators. Clients include 888, Betfair and Paddy Power.

Much of the cost-cutting was undertaken in the final three months of last year. It involved moving operations from its London office and consolidating them at its base in Malta, where its software is developed.