The pioneering online gambling software firm CryptoLogic has reported
third quarter revenues up 32 percent to US$27.7 million (GBP14.5 million),
with EBITDA of US$7.6 million, a 27 percent rise on 2005.
Nine-month results 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 on the same period. Online casino fees represented 59 percent of revenues and internet poker 30 percent.
The company strategy of broadening its player base to include players other than those in the United States has been vindicated with the passage of the Unlawful Internet Gambling Enforcement Act, which has damaged many other public companies in the sector.
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 CryptoLogic had already taken action by ensuring that all of its licensees had stopped accepting bets from US players. While this will significantly reduce the company's revenue and earnings in the short-term, CryptoLogic is poised to be a leader in a new online gaming world that excludes the US market, he said.
On an operational level, the company highlighted the signing of on an exclusive basis of 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 maintaining of its quarterly cash dividend of US$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.
CryptoLogic also highlighted the 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. There are approximately four billion people in Asia, or 10 times the population of North America, and gaming has been part of Asian culture for thousands of years.