Software Company Makes Plans to Break Into Asian Market

CryptoLogic, the ground-breaking online gambling software company, is reporting a twenty-seven percent improvement in revenues over the year 2005, with a third quarter revenues report of an increase of 32 percent to US$27.7 million (GBP14.5 million).  This is a EBITDA of US$7.6 million.

Results for a 9 month period show a thirty-nine percent improvement in revenues which grew to US$85 million which calculated for a 12-month period. The company also reports an improvement in EBITDA to US$25.7 million, a forty-eight percent improvement for the same period. The breakdown of revenues is fifty-nine percent from online casino fees and inclm from internet poker at 30 percent.

With the passage of the Unlawful Internet Gambling Enforcement Act, the company’s established strategy of widening its player base so as to comprise players from other places than the United States has been proven correct. This new legislation has seriously damaged several other companies in this same market sector.

The president and chief executive of CryptoLogic, Lewis Rose, is reported as saying that his company’s reported excellent revenues results from the company’s innovative strategy and their wise diversification of their revenue base. He notes that their recorded earnings for the first nine months of 2006 already exceed their earnings for the whole of 2005.

According to Rose CryptoLogic has already taken proper steps to assure that all of its licensees have ceased accepting bets from US resident players. While in the short-term this will certainly diminish the company's earnings and revenue, CryptoLogic is on the brink of becoming a leader in a new world of online gaming that does not include the US market. 

At their level of operations, Besafe the Scandanavian centered poker site signed with CryptoLogic on an exclusive basis. They have agreed to the launching of several new games including Cubis and Hold’em Blackjack, along with the introduction of a leader board to be used in a new poker tournament. The company will also maintain its  quarterly cash dividend at US$0.12.

CryptoLogic has declared its year-to-date financial results at a record $129 million, and is confident in its ability to aggressively invest in its future business growth.

The company has also announced its presence in the Asian market. They have established offices in Singapore and are hiring a new regional managing director for that region. In the short-term, the company will continue to focus on the European market, but CryptoLogic views Asia as the up and coming major online gaming market. Noting that there are approximately four billion people living in Asia, it stresses that this is 10 times the population of North America. In addition to that, they note that Asians have always been attracted to playing games, over a period of millennium.

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