CryptoLogic, the innovative online gambling software company, had good news to report about its third quarter revenues.  According to the report, the company saw revenues go up by 32 percent to US $27.7 million (GBP14.5 million), with EBITDA of US $7.6 million, a 27 percent rise over last year.

What’s more, the results for the last nine months revealed a 39 percent rise in revenues to US $85 million on a 12-month basis and a 48 percent increase in EBITDA to US $25.7 million for the same period. Internet poker represented 30 percent of revenues and online casino fees represented 59 percent.

CryptoLogic attributes a large part of its success to its strategy of broadening its player base to include players living outside the United States.  Other online gambling companies that relied heavily on a U.S. customer base have suffered considerably since the passage of the Unlawful Gambling Enforcement Act.

Lewis Rose, president and chief executive of CryptoLogic, said: “CryptoLogic’s excellent results reflect our strategy of innovation and our strong diversified revenue base. We have already recorded higher earnings in the nine months to date in 2006 than we did for all of 2005."

Rose added that CyrptoLogic had previously acted with foresight and had already ceased taking bets from U.S. residents.  While this will affect the company’s profits in the short-term, in the long-term CryptoLogic will benefit from its fast acting and forward thinking approach.
From an operational level, CryptoLogic also had some good news to report including the signing of an exclusive deal for the Scandinavian-focused poker site Besafe, the launch of new games Hold’em Blackjack and Cubis, the introduction of a new poker tournament leader board and the fact that it was able to maintain its quarterly cash dividend of US $0.12.

CyrptoLogic also reported record year-to-date financial results and $129 million in cash, which is a strong indicator of the company’s ability to make significant investments in the growth of its future business.

Not to be forgotten in CryptoLogic’s long line of successes, is the establishment of the company’s first Asian presence.  CryptoLogic now has a new office in Singapore as well as a new managing director for the region. For the short-term, CryptoLogic may be focusing on Europe, but its long-term strategy includes targeting the Asian market in a very big way. With its population of about 4 billion and a culture where gaming has been popular for thousands of years, Asia does indeed seem to represent a promising market for the online gambling industry.

Posted on: November 22, 2006

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