The Canadian Press reports that Betfair provides as much as a tenth
of the Toronto software company's revenue but that, "It
is expected there will be no material effect on CryptoLogic's 2005
and 2006 results" as a result of Betfair's previously
announced plan to develop its own poker software and cancel its arrangement
with CryptoLogic's WagerLogic licensing subsidiary. CryptoLogic shares
fell 17 per cent in one day in August after the company disclosed
it could lose Betfair as a customer in early 2006.
CryptoLogic revealed this week that its arrangement with Betfair will
not now end early next year as previously feared. Instead, the contract
will continue until at least June and may be extended to January 2007.
The Betfair licence has typically provided five to 10 per cent of
CryptoLogic's revenue, the Canadian company said. But revenue from
poker licensees other than Betfair has doubled this year, and CryptoLogic's
core business remains its casino software, which provides about 60
per cent of its revenue.
"We have enjoyed a mutually profitable relationship with
Betfair and we are pleased that the relationship will continue in
2006," stated CEO Lewis Rose.
"CryptoLogic has grown into a well diversified organization
- in its customers, products and markets. This means continued growth
from our core customers, continued financial strength to invest in
new products, and the continued prospect of new partnerships."
London-based Betfair has about 300,000 registered customers and claims
that Betfairpoker.com, launched in May 2004 using the WagerLogic central
poker room shared by all of CryptoLogic's poker licensees, averages
18,000 active players a month.
Steve Ives, director of Betfair Games said earlier that it had always
been Betfair's strategy to own and operate its own software for all
core products. "We are pursuing ways to do this and will
be ready to proceed when the current contract expires,"
he said in complimenting WagerLogic for its services.