Major Plans For The Asian Market

CryptoLogic, the pioneering online gambling software firm, reports third quarter revenues up 32 percent to $27.7 million, with EBITDA of $7.6 million, a 27 percent rise on 2005.

The 9 month results showed a 39 percent rise in revenues to $85 million on a 12-month basis and a 48 percent increase in EBITDA to $25.7 million for the same period. Online casino fees comprised 59% of revenues and internet poker 30%.

The company strategy of broadening its player base to include players outside the US has been vindicated with the passage of the Unlawful Internet Gambling Enforcement Act, UIGEA, which has damaged many public companies in the industry. President and chief executive of CryptoLogic, Lewis Rose stated, “CryptoLogic’s excellent results reflect our innovative strategy and our strong diversified revenue base. We have already recorded higher earnings in the nine months to date in 2006 than we did for the whole of 2005."

“All our licensees have stopped accepting bets from US players. This will significantly reduce the company's revenue and earnings in the short-term, but CryptoLogic is poised to be a leader in a new online gaming world that excludes the US market.” Rose added that CryptoLogic had already taken necessary action to ensure its future as far as the UIGEA is concerned.

The company report highlighted the signing of an exclusive basis of Scandinavian-focused poker site Besafe, the launch of new games Hold’em, Blackjack and Cubis, the introduction of a poker tournament leader board and the maintaining of its quarterly cash dividend of $0.12. The company reported record year-to-date financial results and $129 million in cash, expressing confidence in an ability to invest aggressively in the growth of its future business.

The report also highlighted CryptoLogic’s establishment of its first Asian presence, with a new office in Singapore and the hiring of a new managing director for the region. While the company's short-term focus is on Europe, CryptoLogic sees Asia as the next major online gaming market.

“Gaming has been part of Asian culture for thousands of years and we note with interest that there are approximately four billion people in Asia, or 10 times the population of North America.”

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