CRYPTOLOGIC Q1 2008 REPORT RELEASED
CRYPTOLOGIC Q1 2008 REPORT RELEASED Turnkey provider's customer revenues rise, but income overall slightly down The Dublin-based online gambling software developer and turnkey provider Cryptologic released its first quarter 2008 numbers this week, showing a 21 percent rise in customer revenues, overall income slightly down and impressive amounts of cash on hand at the end of the reporting period. The rise in customer revenues was attributed to strong casino growth from new game offerings featuring Marvel Super Heroes Spider-Man and the Fantastic Four, and an increased number of licensees. Customer revenues reached $18.3 million (Q1 2007: $15 million) whilst overall group income faded a little at $19.3 million (2007: 19.6 million) with operating expenses declining by an encouraging 8 percent. CEO Brian Hadfield reported an impressive cash balance (up $3.5 million on Q1 2007) of $81 million as at 31 March. Hadfield reported highlights that included new games releases, new language versions for the World Poker Tour licensee and the the acquisition of the successful gambling information portal Casino.co.uk (see previous InfoPowa reports). Expansion into Asia continued through partnerships and buy-ins to companies in the region and recent new licensee agreements featuring 888.com, OPoker and Maharajah Club. "Cryptologic is benefiting from a focused strategy of innovation, expansion, diversification and execution," said Hadfield. "In the first quarter, Cryptologic laid the foundations for future growth with investments in new games, new leadership and new partnerships with leading gaming and entertainment brands. That's why we are confident that CryptoLogic is on track for significant growth in 2008 and 2009." During the quarter the company completed development of seven exclusive new casino games, highlighted by the Internet's first slot version of the world-famous Street Fighter II arcade game, and continued to generate revenue growth from core customers due in part to the popularity of its new slot games featuring Marvel Super Heroes Spider-Man and the Fantastic Four. After reorganising its business and returning to profitability in 2007 following the U.S. prohibition on financial transactions with online gambling companies, Hadfield believes the company is on track for significant expansion in 2008 and 2009. The company's strength in software development and its stable and growing customer base position it for continued growth in Europe, the report asserts. In Asia, Crypto expects to earn new revenue from its strategic moves into mobile gaming, subscription-based games and other rapidly growing segments in large markets such as China, Singapore, India and Korea. CryptoLogic's investments in Asia are performing well and are meeting or exceeding the performance measures agreed at the time of the initial investment, Hadfield revealed. CryptoLogic management is targeting a return to its 2006 revenue and earnings levels by the end of 2009.