DUBLIN, IRELAND, Jan 15, 2009 --CryptoLogic, a world leader in Internet casino and branded gaming software, today provided an update on its new growth strategy and restructuring program that positions the company for a return to profitability and cash generation in 2009, and further growth in the years to come.
Highlights
Restructuring program
Under the plan announced in October 2008, the company is on track to achieve:
- Reduced total operating costs of approximately $13 million on an annualized basis by the end of Q2 2009.
- Restructuring to result in $3.5 million cash costs and up to $20 million in further non-cash charges.
- Outsourcing of poker network through strategic partnership with GTECH Corporation to be completed by the end of Q1 2009. Partnership will improve poker-room liquidity for CryptoLogic customers, while eliminating the costs of operating a standalone network.
- Rationalization includes reconfiguration of network, a 75% reduction in servers and office rental costs.
New strategy for growth
- Growth to be driven by Internet casino business, and by development and licensing of branded online games to leading gaming and entertainment brands.
- Recently contracted customers including 888.com, PartyGaming and GigaMedia expected to generate new revenues of at least $8 million in 2009.
- Continued aggressive expansion of casino business through licensing contracts, with a robust new business pipeline for 2009.
- Yesterday signed a new licensing contract with Gaming Technology Solutions plc, whose customers include Unibet, bwin and many other top brands.
2009 outlook
Based on no significant further deterioration in economic conditions and stabilization of currency rates, the company expects:
- Return to profitability and cash generation from Q2 2009.
- Full year cash generation post restructuring of $11-$13 million.
- Net profits in the range of $9-$10 million.
- Diluted earnings per share of 65-71 cents.
"CryptoLogic has taken radical steps to focus on its core strengths as a developer of exciting online gaming content," said Brian Hadfield, CryptoLogic's President & CEO. "We are on track to return to profitability and generate cash from the second quarter of 2009."
"Our streamlined operations, lower operating costs and commitment to creating compelling customer experience, together with a highly profitable build-once-sell-often model, provides a solid springboard for long-term growth and shareholder value."
Overview
CryptoLogic is making significant progress in executing its new growth strategy and restructuring program, first outlined in October 2008. These plans were developed after a fundamental review of the business by the company's management under Brian Hadfield, following his appointment as President & CEO at the end of February 2008.
This new strategy is to achieve long-term growth, sustained profitability and strong cash generation by adopting a radically new business model that focuses on CryptoLogic's successful Internet casino business and the development and licensing of the company's highly acclaimed software.
Restructuring for profitability
As announced previously, the company is implementing a plan to reduce annual operating costs by $13 million through various initiatives. Approximately $8.5 million of the savings are attributable to a reduction in employee expenses; about $2.5 million are from infrastructure and facilities downsizing; and some $2.0 million in savings are expected from operational efficiencies across the business.
Poker partnership cuts costs, adds liquidity
In November 2008, the company announced the outsourcing of its hosted poker business by entering into a strategic partnership with GTECH Corporation's International Poker Network. The move gives CryptoLogic's poker licensees and players access to a larger network with a combined average of 15,000 active players.
The transfer of poker licensees and systems to the GTECH network is expected to be completed by the end of the first quarter. The company will continue to provide a full-service offering for its licensees through the GTECH network and receive ongoing revenues from its transferred customers.
New customers to drive revenue growth
CryptoLogic significantly increased its customer acquisition activities in 2008, resulting in 10 new contracts for both hosted Internet casinos and the licensing of branded games. Yesterday the company further expanded its channel to market with a strategic partnership with Gaming Technology Solutions plc, a leading global supplier of platform solutions for online gaming operations. Under the agreement, CryptoLogic's top performing games will be made available to GTS customers, which include Unibet, bwin, Expekt and Betclick among many other top brands.
Going forward, the "build-once-license-often" model offers excellent revenue potential at low cost and will be the major driver of growth. The company's new customers include 888.com, PartyGaming, GigaMedia, SkyBet (part of BskyB Group), Orbis, The Poker Channel and Betjacks. These agreements offer significant revenue potential for 2009 and beyond.
Investing for future
In order to leverage its industry leadership in the development and deployment of casino games, the company is introducing the CryptoLogic Centre for Innovation where customers, partners, universities and others can participate in defining and guiding the future of e-gaming.
As part of the new strategy and image, the company will also unveil its new branding program and logo based around "extraordinary e-gaming innovation" with the production of the new annual report due in May.
Outlook
The company is in the process of finalizing its results for the fourth quarter and full year 2008. While trading levels were broadly in line with management expectations in the fourth quarter, revenues were affected by the continued strengthening of the US dollar, the company's reporting currency, against the Euro, Canadian dollar and the British pound. As a result, reported revenues are expected to be approximately 14% lower than the previous quarter. Against that, recurring operating expenses will also be lower due to currency fluctuations. Net cash at the year end was between $42-$43 million.
Given difficult global economic conditions, the company is taking a cautious view of top line growth in 2009. Nevertheless, CryptoLogic's actions to reduce operating costs and execute its new growth strategy will enable the company to return to profitability and cash generation from Q2 2009. In addition, the company expects full year cash generation post restructuring of $11-$13 million, net profits in the range of $9-$10 million, and diluted earnings per share of 65-71 cents. The above guidance assumes no significant further deterioration in economic conditions and stabilization of currency rates.
Investor/analyst conference call
CryptoLogic will hold a conference call today at 8:30 am Eastern time (1:30 p.m. GMT) to update investors on the progress of its plan to return to growth and profitability in 2009. The details of the call are as follows:
Toll Free North America:
1-877-677-0837 Toll Free UK: 00 800-6578-9898 Toll Free International (Country Code) 800-6578-9898 Toronto Dial-In Number:
416-695-6616
To participate, please call five to ten minutes prior to the start of the teleconference. This conference call will be recorded and available for replay approximately one hour after the completion of the call, up until midnight January 22, 2009. To listen to the replay, please dial 416-695-5800 or 1-800-408-3053, passcode 3277967#. A transcript of the call will also be made available on CryptoLogic's website at www.cryptologic.com under Investor Information.
About CryptoLogic(R: 32.92, -0.23, -0.69%) (www.cryptologic.com)
Focused on integrity and innovation, CryptoLogic Limited is a leading blue-chip public developer and supplier of Internet gaming software. Its leadership in regulatory compliance makes it one of the very few companies with gaming software that is certified to strict standards similar to land-based gaming. WagerLogic(R: 4.4, -0.01, -0.23%) Limited, a wholly-owned subsidiary of CryptoLogic, is responsible for the licensing of its gaming software and services to blue-chip customers that offer their games to non-U.S. based players around the world. For information on WagerLogic, please visit www.wagerlogic.com.
CryptoLogic's common shares trade on the Toronto Stock Exchange (CRY, CXY), the NASDAQ Global Select Market (CRYP: 16.09, -0.06, -0.37%) and the Main Market of the London Stock Exchange (CRP).
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS:
Certain statements contained in this press release constitute forward-looking statements within the meaning of applicable securities laws and safe harbors, including the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of historical fact. When used in this document, the words "may," "would," "could," "should," "will," "intend," "plan," "anticipate," "believe," "estimate," "expect" and similar expressions, as they relate to CryptoLogic or our management, are intended to identify forward-looking statements. These statements include, without limitation, statements regarding cost savings expected to materialize from our reduced operating costs and restructuring plan; revenues anticipated from licensing contracts; and future cash generating activities, net profits, and earnings per share. Forward-looking statements reflect CryptoLogic's current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, without limitation, risks associated with CryptoLogic's financial condition and prospects, legal risks associated with Internet gaming and related governmental legislation and regulation, risks associated with market acceptance and technological changes, risks associated with dependence on licensees and key licensees, risks relating to international operations, risks associated with competition and other risks detailed in CryptoLogic's filings with securities regulatory authorities. These and other factors could cause CryptoLogic's actual results, performance or achievements that may be expressed or implied by such forward-looking statements to vary from those made in this press release, or that are otherwise made by or on behalf of CryptoLogic. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. CryptoLogic does not intend, and does not assume any obligation, to update these forward-looking statements.
Contacts: CryptoLogic Stephen Taylor Chief Financial Officer 353 (0) 1 234 0415 www.cryptologic.com
Argyle Communications Jason Graham (North American and gaming industry media) (416) 968-7311, ext 229 jgraham@argylecommunications.com
Argyle Communications Daniel Tisch (North American and gaming industry media) (416) 968-7311, ext 223 dtisch@argylecommunications.com
Corfin Communications Neil Thapar (UK media only) +44 207 977 0020 Corfin Communications Harry Chathli or Alexis Gore (UK media only) +44 207 977 0020
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Monday, January 26, 2009
Wednesday, January 21, 2009
Kentucky Domain Seizures Struck Down by Appeals Court
PPA heralds ruling as "tremendous victory"
January 20, 2009 -- The Poker Players Alliance (PPA) website is reporting that the Kentucky Court of Appeals has ruled today that the state may not enforce its order attempting to seize 141 domain names, which was pending since last fall.
The PPA's Executive Director John Pappas has made this statement: "This is a tremendous victory for Internet freedom and the rights of Kentucky residents who enjoy playing online poker. We are pleased that the appeals court has forcefully reversed Judge Wingate's earlier ruling and confirmed many of the arguments that have been raised in opposition to the seizure effort. The Court of Appeals has agreed with the PPA's position that Judge Wingate did not have jurisdiction to issue the order that he entered against these domains and that Secretary Brown has no legitimate right to deprive the citizens of Kentucky of the legal right to play poker online."
"On behalf of the thousands of PPA members who live in Kentucky we hope that Governor Beshear and Secretary Brown will abandon this misguided effort and focus new energies into regulation and taxation of Internet poker," said Rich Muny, Kentucky State Director for the PPA, who resides in Union, KY. "This common-sense approach would benefit Kentucky's poker enthusiasts and the revenue will benefit the state as a whole. Rather than spending hard to find dollars on this case, the Governor could actually turn this into a much needed new revenue stream for the Commonwealth."
This quote comes courtesy of the Casino City Times website, which also stated that the ruling may be due to "powerful arguments from a strong coalition of independent voices who opposed the Franklin Circuit Court ruling. Groups like the PPA, the ACLU of Kentucky and the Electronic Frontier Foundation all successfully weighed in with the appellate court from a variety of legal perspectives."
This should be the end of this situation, although Kentucky Governor Beshear may continue to appeal or take other action if he is unwilling to accept this judgment. Still, an important victory has been won on behalf of the online gaming industry today.
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January 20, 2009 -- The Poker Players Alliance (PPA) website is reporting that the Kentucky Court of Appeals has ruled today that the state may not enforce its order attempting to seize 141 domain names, which was pending since last fall.
The PPA's Executive Director John Pappas has made this statement: "This is a tremendous victory for Internet freedom and the rights of Kentucky residents who enjoy playing online poker. We are pleased that the appeals court has forcefully reversed Judge Wingate's earlier ruling and confirmed many of the arguments that have been raised in opposition to the seizure effort. The Court of Appeals has agreed with the PPA's position that Judge Wingate did not have jurisdiction to issue the order that he entered against these domains and that Secretary Brown has no legitimate right to deprive the citizens of Kentucky of the legal right to play poker online."
"On behalf of the thousands of PPA members who live in Kentucky we hope that Governor Beshear and Secretary Brown will abandon this misguided effort and focus new energies into regulation and taxation of Internet poker," said Rich Muny, Kentucky State Director for the PPA, who resides in Union, KY. "This common-sense approach would benefit Kentucky's poker enthusiasts and the revenue will benefit the state as a whole. Rather than spending hard to find dollars on this case, the Governor could actually turn this into a much needed new revenue stream for the Commonwealth."
This quote comes courtesy of the Casino City Times website, which also stated that the ruling may be due to "powerful arguments from a strong coalition of independent voices who opposed the Franklin Circuit Court ruling. Groups like the PPA, the ACLU of Kentucky and the Electronic Frontier Foundation all successfully weighed in with the appellate court from a variety of legal perspectives."
This should be the end of this situation, although Kentucky Governor Beshear may continue to appeal or take other action if he is unwilling to accept this judgment. Still, an important victory has been won on behalf of the online gaming industry today.
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Monday, January 19, 2009
Cryptologic CEO plans to open innovation centre
15th January 2009
Press Release
LONDON — Software developer Cryptologic plans to open a centre to develop gaming technology beyond consoles and personal computers, the company told Reuters on Thursday.
“We have partners and clients interested and we're speaking to universities worldwide – it should throw up some interesting things,” Chief Executive Brian Hadfield said.
“It [will be] a place where customers, partners, universities and others can participate in defining and guiding the future of e-gaming,” he added.
Mr. Hadfield said he was keen to see what can be achieved by looking at the full extent of opportunities within mobile technology and social websites, as gaming evolves.
He was speaking after the company said its restructuring program, announced last October, is on track. Small cap Cryptologic's shares gained 19.5 per cent.
RESTRUCTURING
Cryptologic said it is on target to reduce total operating costs of approximately $13-million (U.S.) on an annualized basis by the end of second quarter 2009 The company also said the outsourcing of its poker network through strategic partnership with GTECH Corporation will be completed by the end of first quarter 2009.
“We looked at the business asked ourselves “what are we good at?” And we're good at casino games and branded games,” Mr. Hadfield said.
Its partnership with GTECH, allows its customers to gamble on Boss Media's International poker network with a wider customer base, a move which Cryptologic says reduced costs and turned its loss-making poker operation to profit.
Mr. Hadfield said he now sees a return to profitability and cash generation from the second quarter. He said organic growth will be difficult this year but the company's strategy of adding new licensee revenue will help.
In the past few months Cryptologic has added 10 new licencees including 888.com, Partygaming and most recently GTS.
Cryptologic predicts full-year cash generation post restructuring of $11-million to $13 million and net profit in the range of $9-million to $10-million.
Mr. Hadfield said he prefers to be prudent and keeps expectations realistic, given the sharp downturn in the economy in the last quarter of 2008.
“In the current climate cash is king,” he said. Cryptologic has cash of between $42-million and $43-million, but Mr. Hadfield added if there is an acquisition that “adds-value and strengthens operations” then he would look at it.
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Press Release
LONDON — Software developer Cryptologic plans to open a centre to develop gaming technology beyond consoles and personal computers, the company told Reuters on Thursday.
“We have partners and clients interested and we're speaking to universities worldwide – it should throw up some interesting things,” Chief Executive Brian Hadfield said.
“It [will be] a place where customers, partners, universities and others can participate in defining and guiding the future of e-gaming,” he added.
Mr. Hadfield said he was keen to see what can be achieved by looking at the full extent of opportunities within mobile technology and social websites, as gaming evolves.
He was speaking after the company said its restructuring program, announced last October, is on track. Small cap Cryptologic's shares gained 19.5 per cent.
RESTRUCTURING
Cryptologic said it is on target to reduce total operating costs of approximately $13-million (U.S.) on an annualized basis by the end of second quarter 2009 The company also said the outsourcing of its poker network through strategic partnership with GTECH Corporation will be completed by the end of first quarter 2009.
“We looked at the business asked ourselves “what are we good at?” And we're good at casino games and branded games,” Mr. Hadfield said.
Its partnership with GTECH, allows its customers to gamble on Boss Media's International poker network with a wider customer base, a move which Cryptologic says reduced costs and turned its loss-making poker operation to profit.
Mr. Hadfield said he now sees a return to profitability and cash generation from the second quarter. He said organic growth will be difficult this year but the company's strategy of adding new licensee revenue will help.
In the past few months Cryptologic has added 10 new licencees including 888.com, Partygaming and most recently GTS.
Cryptologic predicts full-year cash generation post restructuring of $11-million to $13 million and net profit in the range of $9-million to $10-million.
Mr. Hadfield said he prefers to be prudent and keeps expectations realistic, given the sharp downturn in the economy in the last quarter of 2008.
“In the current climate cash is king,” he said. Cryptologic has cash of between $42-million and $43-million, but Mr. Hadfield added if there is an acquisition that “adds-value and strengthens operations” then he would look at it.
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Saturday, January 17, 2009
iMEGA Legal Challenge May Resume in April, by Dan Cypra - Poker News Daily - 15th January 2009
In November, the Interactive Media Entertainment and Gaming Association (iMEGA) filed its response brief in a legal challenge to declare the Unlawful Internet Gambling Enforcement Act (UIGEA) unconstitutional. On Thursday, the organization announced that it had been contacted by the Third Circuit Court of Appeals about its availability in April.
The case stems from the 2006 passage of the UIGEA, which was ushered through Congress by former Senate Majority Leader Bill Frist (R-TN). Attached to the SAFE Port Act, an unrelated port security measure, the UIGEA cleared the Senate by unanimous consent and was signed into law by outgoing U.S. President George W. Bush in October of that year. The law did not prescribe what was “unlawful.” Instead, it deferred to existing state and federal laws, claiming that the transfer of money to any “unlawful” enterprise was illegal.
Its vagueness turned the industry upside down, as the largest online poker room at the time, PartyPoker, vacated the U.S. market. Following the Party Gaming owned room were others, including Paradise Poker and Pacific Poker. Payment processors including NETELLER and Citadel Commerce also departed the United States. iMEGA has since been granted standing to sue to declare the UIGEA unconstitutional. Its “void for vagueness” argument may now head to the Third Circuit Court of Appeals as soon as April. The Court contacted both iMEGA and the Federal Government seeking the parties’ availability during the month.
The case, which is appeal number 08-1981, lists former U.S. Attorney General Peter Keisler, the Federal Trade Commission, and the Federal Reserve as its defendants. On its main argument, iMEGA claims in its response brief, “The void for vagueness doctrine requires that a policy or statute defines an offense with sufficient definitiveness so that ordinary people can understand what conduct is prohibited.” According to Congressman Barney Frank (D-MA), Chairman of the House Financial Services Committee, the legality of online wagering on horse racing, for example, “depended on which department you asked,” according to a statement made in 2008.
iMEGA Chairman Joe Brennan commented in a press release distributed on Thursday, “We’re very happy the Court is moving forward to schedule oral arguments. We’re confident we have a strong suit and it will be difficult for the Department of Justice to defend UIGEA because it is so fatally flawed.” The UIGEA charges the financial services industry with determining what is and is not permissible. According to iMEGA, this is grounds for the law being unconstitutional. The press release read, “Congress cannot delegate that necessary determination as to what is ‘lawful’ or ‘unlawful’ to U.S. banks and credit card companies.”
In March, Judge Mary L. Cooper of the New Jersey U.S. District Court granted the organization standing to sue. However, in her judgment, she also disagreed with many of its main arguments. Consequently, iMEGA appealed, but ultimately had standing. In September, it officially filed its brief with the Third Circuit Court of Appeals. In its legal case, iMEGA noted that officials from the U.S. Treasury and Federal Reserve testified before Congress that they would not be able to enforce the UIGEA, as a strict definition of what is legal and illegal was never given. Nevertheless, the regulations of the law were passed by the Bush Administration as part of its “midnight rulemaking” and will be enacted on January 19th (next Monday), one day before President-elect Barack Obama is sworn in. Compliance by the financial services industry is required by December 1st.
iMEGA’s legal team is also one of the main parties involved in the ongoing legal battle in Kentucky involving the seizure and potential forfeiture of 141 internet gambling domain names, including those belonging to some of the world’s largest online poker sites. The state’s Court of Appeals heard arguments during a one hour session in December and the industry now awaits the ruling of the three judge panel, which is expected by the end of the month (although no official timeline has been given). The Interactive Gaming Council (IGC) as well as an attorney who represents several of the sites in jeopardy have both flanked iMEGA in the Bluegrass State battle.
iMEGA was founded in 2007 and almost immediately found itself immersed in the internet gambling industry. Brennan is a former online marketing and strategic analyst whose past clients include Sirius Satellite Radio, CNN, People Magazine, CBS News, and the National Football League. The organization is based in Washington, D.C. and its main counsel in the UIGEA challenge is Eric Bernstein. (Credit: Poker News Daily)
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The case stems from the 2006 passage of the UIGEA, which was ushered through Congress by former Senate Majority Leader Bill Frist (R-TN). Attached to the SAFE Port Act, an unrelated port security measure, the UIGEA cleared the Senate by unanimous consent and was signed into law by outgoing U.S. President George W. Bush in October of that year. The law did not prescribe what was “unlawful.” Instead, it deferred to existing state and federal laws, claiming that the transfer of money to any “unlawful” enterprise was illegal.
Its vagueness turned the industry upside down, as the largest online poker room at the time, PartyPoker, vacated the U.S. market. Following the Party Gaming owned room were others, including Paradise Poker and Pacific Poker. Payment processors including NETELLER and Citadel Commerce also departed the United States. iMEGA has since been granted standing to sue to declare the UIGEA unconstitutional. Its “void for vagueness” argument may now head to the Third Circuit Court of Appeals as soon as April. The Court contacted both iMEGA and the Federal Government seeking the parties’ availability during the month.
The case, which is appeal number 08-1981, lists former U.S. Attorney General Peter Keisler, the Federal Trade Commission, and the Federal Reserve as its defendants. On its main argument, iMEGA claims in its response brief, “The void for vagueness doctrine requires that a policy or statute defines an offense with sufficient definitiveness so that ordinary people can understand what conduct is prohibited.” According to Congressman Barney Frank (D-MA), Chairman of the House Financial Services Committee, the legality of online wagering on horse racing, for example, “depended on which department you asked,” according to a statement made in 2008.
iMEGA Chairman Joe Brennan commented in a press release distributed on Thursday, “We’re very happy the Court is moving forward to schedule oral arguments. We’re confident we have a strong suit and it will be difficult for the Department of Justice to defend UIGEA because it is so fatally flawed.” The UIGEA charges the financial services industry with determining what is and is not permissible. According to iMEGA, this is grounds for the law being unconstitutional. The press release read, “Congress cannot delegate that necessary determination as to what is ‘lawful’ or ‘unlawful’ to U.S. banks and credit card companies.”
In March, Judge Mary L. Cooper of the New Jersey U.S. District Court granted the organization standing to sue. However, in her judgment, she also disagreed with many of its main arguments. Consequently, iMEGA appealed, but ultimately had standing. In September, it officially filed its brief with the Third Circuit Court of Appeals. In its legal case, iMEGA noted that officials from the U.S. Treasury and Federal Reserve testified before Congress that they would not be able to enforce the UIGEA, as a strict definition of what is legal and illegal was never given. Nevertheless, the regulations of the law were passed by the Bush Administration as part of its “midnight rulemaking” and will be enacted on January 19th (next Monday), one day before President-elect Barack Obama is sworn in. Compliance by the financial services industry is required by December 1st.
iMEGA’s legal team is also one of the main parties involved in the ongoing legal battle in Kentucky involving the seizure and potential forfeiture of 141 internet gambling domain names, including those belonging to some of the world’s largest online poker sites. The state’s Court of Appeals heard arguments during a one hour session in December and the industry now awaits the ruling of the three judge panel, which is expected by the end of the month (although no official timeline has been given). The Interactive Gaming Council (IGC) as well as an attorney who represents several of the sites in jeopardy have both flanked iMEGA in the Bluegrass State battle.
iMEGA was founded in 2007 and almost immediately found itself immersed in the internet gambling industry. Brennan is a former online marketing and strategic analyst whose past clients include Sirius Satellite Radio, CNN, People Magazine, CBS News, and the National Football League. The organization is based in Washington, D.C. and its main counsel in the UIGEA challenge is Eric Bernstein. (Credit: Poker News Daily)
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Thursday, January 15, 2009
NextGen Gaming Profile
NextGen Gaming is the world’s leading independent supplier of innovative games to the gambling industry. NextGen has delivered hundreds of games to our international partners and gained a reputation for delivering the best player experience. We pride ourselves on our ability to deliver exceptional game performance and game longevity that translates into profit for our partners and a great experience for their players.
We partner with On-Line, Land Based Operators and Software providers and our success has been built on the exceptional performance of the games we have delivered to our partners.
Founded in 1999, NextGen pioneered platform-independent content delivery. Our vision was a new model of engagement focused on the games and from the very beginning we have built our reputation as an innovator. We push the envelope of innovation to enhance the player experience. In this emerging era of digital gaming our strong culture of innovation and responsiveness is embedded within our proven management and development processes. This maturity and longevity of business has enabled us to engage in long-term strategic projects with our partners and deliver sustainable value to their businesses.
NextGen is unique in its ability to offer our partners and clients an end-to-end gaming development service. Our Partner Management team ensures that we communicate effectively with our Partners. Our Product Management team uses our extensive player knowledge database to target games. Our Game Innovation Team is responsible for developing ideas and concepts that expand the boundaries of current gaming products. Our Project Management and Product Development teams ensure that we deliver to quality and timeline expectations. Our Software Integration team helps our partners to integrate new and exciting features. Combined, our management and development teams offer an unmatched service to the industry.
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NextGen Gaming
We partner with On-Line, Land Based Operators and Software providers and our success has been built on the exceptional performance of the games we have delivered to our partners.
Founded in 1999, NextGen pioneered platform-independent content delivery. Our vision was a new model of engagement focused on the games and from the very beginning we have built our reputation as an innovator. We push the envelope of innovation to enhance the player experience. In this emerging era of digital gaming our strong culture of innovation and responsiveness is embedded within our proven management and development processes. This maturity and longevity of business has enabled us to engage in long-term strategic projects with our partners and deliver sustainable value to their businesses.
NextGen is unique in its ability to offer our partners and clients an end-to-end gaming development service. Our Partner Management team ensures that we communicate effectively with our Partners. Our Product Management team uses our extensive player knowledge database to target games. Our Game Innovation Team is responsible for developing ideas and concepts that expand the boundaries of current gaming products. Our Project Management and Product Development teams ensure that we deliver to quality and timeline expectations. Our Software Integration team helps our partners to integrate new and exciting features. Combined, our management and development teams offer an unmatched service to the industry.
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CryptoLogic Expects to Deliver Net Income of $9-$10 Million in 2009
Branded e-gaming software pioneer on track with new growth strategy to generate cash, reduce costs and deliver profits from expanding its casino business
DUBLIN, IRELAND, Jan 15, 2009 (MARKET WIRE via COMTEX) -- CryptoLogic, a world leader in Internet casino and branded gaming software, today provided an update on its new growth strategy and restructuring program that positions the company for a return to profitability and cash generation in 2009, and further growth in the years to come.
Highlights
Restructuring program
Under the plan announced in October 2008, the company is on track to achieve:
- Reduced total operating costs of approximately $13 million on an annualized basis by the end of Q2 2009.
- Restructuring to result in $3.5 million cash costs and up to $20 million in further non-cash charges.
- Outsourcing of poker network through strategic partnership with GTECH Corporation to be completed by the end of Q1 2009. Partnership will improve poker-room liquidity for CryptoLogic customers, while eliminating the costs of operating a standalone network.
- Rationalization includes reconfiguration of network, a 75% reduction in servers and office rental costs.
New strategy for growth
- Growth to be driven by Internet casino business, and by development and licensing of branded online games to leading gaming and entertainment brands.
- Recently contracted customers including 888.com, PartyGaming and GigaMedia expected to generate new revenues of at least $8 million in 2009.
- Continued aggressive expansion of casino business through licensing contracts, with a robust new business pipeline for 2009.
- Yesterday signed a new licensing contract with Gaming Technology Solutions plc, whose customers include Unibet, bwin and many other top brands.
2009 outlook
Based on no significant further deterioration in economic conditions and stabilization of currency rates, the company expects:
- Return to profitability and cash generation from Q2 2009.
- Full year cash generation post restructuring of $11-$13 million.
- Net profits in the range of $9-$10 million.
- Diluted earnings per share of 65-71 cents.
"CryptoLogic has taken radical steps to focus on its core strengths as a developer of exciting online gaming content," said Brian Hadfield, CryptoLogic's President & CEO. "We are on track to return to profitability and generate cash from the second quarter of 2009."
"Our streamlined operations, lower operating costs and commitment to creating compelling customer experience, together with a highly profitable build-once-sell-often model, provides a solid springboard for long-term growth and shareholder value."
Overview
CryptoLogic is making significant progress in executing its new growth strategy and restructuring program, first outlined in October 2008. These plans were developed after a fundamental review of the business by the company's management under Brian Hadfield, following his appointment as President & CEO at the end of February 2008.
This new strategy is to achieve long-term growth, sustained profitability and strong cash generation by adopting a radically new business model that focuses on CryptoLogic's successful Internet casino business and the development and licensing of the company's highly acclaimed software.
Restructuring for profitability
As announced previously, the company is implementing a plan to reduce annual operating costs by $13 million through various initiatives. Approximately $8.5 million of the savings are attributable to a reduction in employee expenses; about $2.5 million are from infrastructure and facilities downsizing; and some $2.0 million in savings are expected from operational efficiencies across the business.
Poker partnership cuts costs, adds liquidity
In November 2008, the company announced the outsourcing of its hosted poker business by entering into a strategic partnership with GTECH Corporation's International Poker Network. The move gives CryptoLogic's poker licensees and players access to a larger network with a combined average of 15,000 active players.
The transfer of poker licensees and systems to the GTECH network is expected to be completed by the end of the first quarter. The company will continue to provide a full-service offering for its licensees through the GTECH network and receive ongoing revenues from its transferred customers.
New customers to drive revenue growth
CryptoLogic significantly increased its customer acquisition activities in 2008, resulting in 10 new contracts for both hosted Internet casinos and the licensing of branded games. Yesterday the company further expanded its channel to market with a strategic partnership with Gaming Technology Solutions plc, a leading global supplier of platform solutions for online gaming operations. Under the agreement, CryptoLogic's top performing games will be made available to GTS customers, which include Unibet, bwin, Expekt and Betclick among many other top brands.
Going forward, the "build-once-license-often" model offers excellent revenue potential at low cost and will be the major driver of growth. The company's new customers include 888.com, PartyGaming, GigaMedia, SkyBet (part of BskyB Group), Orbis, The Poker Channel and Betjacks. These agreements offer significant revenue potential for 2009 and beyond.
Investing for future
In order to leverage its industry leadership in the development and deployment of casino games, the company is introducing the CryptoLogic Centre for Innovation where customers, partners, universities and others can participate in defining and guiding the future of e-gaming.
As part of the new strategy and image, the company will also unveil its new branding program and logo based around "extraordinary e-gaming innovation" with the production of the new annual report due in May.
Outlook
The company is in the process of finalizing its results for the fourth quarter and full year 2008. While trading levels were broadly in line with management expectations in the fourth quarter, revenues were affected by the continued strengthening of the US dollar, the company's reporting currency, against the Euro, Canadian dollar and the British pound. As a result, reported revenues are expected to be approximately 14% lower than the previous quarter. Against that, recurring operating expenses will also be lower due to currency fluctuations. Net cash at the year end was between $42-$43 million.
Given difficult global economic conditions, the company is taking a cautious view of top line growth in 2009. Nevertheless, CryptoLogic's actions to reduce operating costs and execute its new growth strategy will enable the company to return to profitability and cash generation from Q2 2009. In addition, the company expects full year cash generation post restructuring of $11-$13 million, net profits in the range of $9-$10 million, and diluted earnings per share of 65-71 cents. The above guidance assumes no significant further deterioration in economic conditions and stabilization of currency rates.
Investor/analyst conference call
CryptoLogic will hold a conference call today at 8:30 am Eastern time (1:30 p.m. GMT) to update investors on the progress of its plan to return to growth and profitability in 2009. The details of the call are as follows:
Toll Free North America: 1-877-677-0837
Toll Free UK: 00 800-6578-9898
Toll Free International (Country Code) 800-6578-9898
Toronto Dial-In Number: 416-695-6616
To participate, please call five to ten minutes prior to the start of the teleconference. This conference call will be recorded and available for replay approximately one hour after the completion of the call, up until midnight January 22, 2009. To listen to the replay, please dial 416-695-5800 or 1-800-408-3053, passcode 3277967#. A transcript of the call will also be made available on CryptoLogic's website at www.cryptologic.com under Investor Information.
About CryptoLogic(R) (www.cryptologic.com)
Focused on integrity and innovation, CryptoLogic Limited is a leading blue-chip public developer and supplier of Internet gaming software. Its leadership in regulatory compliance makes it one of the very few companies with gaming software that is certified to strict standards similar to land-based gaming. WagerLogic(R) Limited, a wholly-owned subsidiary of CryptoLogic, is responsible for the licensing of its gaming software and services to blue-chip customers that offer their games to non-U.S. based players around the world. For information on WagerLogic, please visit www.wagerlogic.com.
CryptoLogic's common shares trade on the Toronto Stock Exchange (CRY, CXY), the NASDAQ Global Select Market (CRYP) and the Main Market of the London Stock Exchange (CRP).
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS:
Certain statements contained in this press release constitute forward-looking statements within the meaning of applicable securities laws and safe harbors, including the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of historical fact. When used in this document, the words "may," "would," "could," "should," "will," "intend," "plan," "anticipate," "believe," "estimate," "expect" and similar expressions, as they relate to CryptoLogic or our management, are intended to identify forward-looking statements. These statements include, without limitation, statements regarding cost savings expected to materialize from our reduced operating costs and restructuring plan; revenues anticipated from licensing contracts; and future cash generating activities, net profits, and earnings per share. Forward-looking statements reflect CryptoLogic's current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, without limitation, risks associated with CryptoLogic's financial condition and prospects, legal risks associated with Internet gaming and related governmental legislation and regulation, risks associated with market acceptance and technological changes, risks associated with dependence on licensees and key licensees, risks relating to international operations, risks associated with competition and other risks detailed in CryptoLogic's filings with securities regulatory authorities. These and other factors could cause CryptoLogic's actual results, performance or achievements that may be expressed or implied by such forward-looking statements to vary from those made in this press release, or that are otherwise made by or on behalf of CryptoLogic. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. CryptoLogic does not intend, and does not assume any obligation, to update these forward-looking statements.
Media Man Australia Profiles
CryptoLogic
DUBLIN, IRELAND, Jan 15, 2009 (MARKET WIRE via COMTEX) -- CryptoLogic, a world leader in Internet casino and branded gaming software, today provided an update on its new growth strategy and restructuring program that positions the company for a return to profitability and cash generation in 2009, and further growth in the years to come.
Highlights
Restructuring program
Under the plan announced in October 2008, the company is on track to achieve:
- Reduced total operating costs of approximately $13 million on an annualized basis by the end of Q2 2009.
- Restructuring to result in $3.5 million cash costs and up to $20 million in further non-cash charges.
- Outsourcing of poker network through strategic partnership with GTECH Corporation to be completed by the end of Q1 2009. Partnership will improve poker-room liquidity for CryptoLogic customers, while eliminating the costs of operating a standalone network.
- Rationalization includes reconfiguration of network, a 75% reduction in servers and office rental costs.
New strategy for growth
- Growth to be driven by Internet casino business, and by development and licensing of branded online games to leading gaming and entertainment brands.
- Recently contracted customers including 888.com, PartyGaming and GigaMedia expected to generate new revenues of at least $8 million in 2009.
- Continued aggressive expansion of casino business through licensing contracts, with a robust new business pipeline for 2009.
- Yesterday signed a new licensing contract with Gaming Technology Solutions plc, whose customers include Unibet, bwin and many other top brands.
2009 outlook
Based on no significant further deterioration in economic conditions and stabilization of currency rates, the company expects:
- Return to profitability and cash generation from Q2 2009.
- Full year cash generation post restructuring of $11-$13 million.
- Net profits in the range of $9-$10 million.
- Diluted earnings per share of 65-71 cents.
"CryptoLogic has taken radical steps to focus on its core strengths as a developer of exciting online gaming content," said Brian Hadfield, CryptoLogic's President & CEO. "We are on track to return to profitability and generate cash from the second quarter of 2009."
"Our streamlined operations, lower operating costs and commitment to creating compelling customer experience, together with a highly profitable build-once-sell-often model, provides a solid springboard for long-term growth and shareholder value."
Overview
CryptoLogic is making significant progress in executing its new growth strategy and restructuring program, first outlined in October 2008. These plans were developed after a fundamental review of the business by the company's management under Brian Hadfield, following his appointment as President & CEO at the end of February 2008.
This new strategy is to achieve long-term growth, sustained profitability and strong cash generation by adopting a radically new business model that focuses on CryptoLogic's successful Internet casino business and the development and licensing of the company's highly acclaimed software.
Restructuring for profitability
As announced previously, the company is implementing a plan to reduce annual operating costs by $13 million through various initiatives. Approximately $8.5 million of the savings are attributable to a reduction in employee expenses; about $2.5 million are from infrastructure and facilities downsizing; and some $2.0 million in savings are expected from operational efficiencies across the business.
Poker partnership cuts costs, adds liquidity
In November 2008, the company announced the outsourcing of its hosted poker business by entering into a strategic partnership with GTECH Corporation's International Poker Network. The move gives CryptoLogic's poker licensees and players access to a larger network with a combined average of 15,000 active players.
The transfer of poker licensees and systems to the GTECH network is expected to be completed by the end of the first quarter. The company will continue to provide a full-service offering for its licensees through the GTECH network and receive ongoing revenues from its transferred customers.
New customers to drive revenue growth
CryptoLogic significantly increased its customer acquisition activities in 2008, resulting in 10 new contracts for both hosted Internet casinos and the licensing of branded games. Yesterday the company further expanded its channel to market with a strategic partnership with Gaming Technology Solutions plc, a leading global supplier of platform solutions for online gaming operations. Under the agreement, CryptoLogic's top performing games will be made available to GTS customers, which include Unibet, bwin, Expekt and Betclick among many other top brands.
Going forward, the "build-once-license-often" model offers excellent revenue potential at low cost and will be the major driver of growth. The company's new customers include 888.com, PartyGaming, GigaMedia, SkyBet (part of BskyB Group), Orbis, The Poker Channel and Betjacks. These agreements offer significant revenue potential for 2009 and beyond.
Investing for future
In order to leverage its industry leadership in the development and deployment of casino games, the company is introducing the CryptoLogic Centre for Innovation where customers, partners, universities and others can participate in defining and guiding the future of e-gaming.
As part of the new strategy and image, the company will also unveil its new branding program and logo based around "extraordinary e-gaming innovation" with the production of the new annual report due in May.
Outlook
The company is in the process of finalizing its results for the fourth quarter and full year 2008. While trading levels were broadly in line with management expectations in the fourth quarter, revenues were affected by the continued strengthening of the US dollar, the company's reporting currency, against the Euro, Canadian dollar and the British pound. As a result, reported revenues are expected to be approximately 14% lower than the previous quarter. Against that, recurring operating expenses will also be lower due to currency fluctuations. Net cash at the year end was between $42-$43 million.
Given difficult global economic conditions, the company is taking a cautious view of top line growth in 2009. Nevertheless, CryptoLogic's actions to reduce operating costs and execute its new growth strategy will enable the company to return to profitability and cash generation from Q2 2009. In addition, the company expects full year cash generation post restructuring of $11-$13 million, net profits in the range of $9-$10 million, and diluted earnings per share of 65-71 cents. The above guidance assumes no significant further deterioration in economic conditions and stabilization of currency rates.
Investor/analyst conference call
CryptoLogic will hold a conference call today at 8:30 am Eastern time (1:30 p.m. GMT) to update investors on the progress of its plan to return to growth and profitability in 2009. The details of the call are as follows:
Toll Free North America: 1-877-677-0837
Toll Free UK: 00 800-6578-9898
Toll Free International (Country Code) 800-6578-9898
Toronto Dial-In Number: 416-695-6616
To participate, please call five to ten minutes prior to the start of the teleconference. This conference call will be recorded and available for replay approximately one hour after the completion of the call, up until midnight January 22, 2009. To listen to the replay, please dial 416-695-5800 or 1-800-408-3053, passcode 3277967#. A transcript of the call will also be made available on CryptoLogic's website at www.cryptologic.com under Investor Information.
About CryptoLogic(R) (www.cryptologic.com)
Focused on integrity and innovation, CryptoLogic Limited is a leading blue-chip public developer and supplier of Internet gaming software. Its leadership in regulatory compliance makes it one of the very few companies with gaming software that is certified to strict standards similar to land-based gaming. WagerLogic(R) Limited, a wholly-owned subsidiary of CryptoLogic, is responsible for the licensing of its gaming software and services to blue-chip customers that offer their games to non-U.S. based players around the world. For information on WagerLogic, please visit www.wagerlogic.com.
CryptoLogic's common shares trade on the Toronto Stock Exchange (CRY, CXY), the NASDAQ Global Select Market (CRYP) and the Main Market of the London Stock Exchange (CRP).
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS:
Certain statements contained in this press release constitute forward-looking statements within the meaning of applicable securities laws and safe harbors, including the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of historical fact. When used in this document, the words "may," "would," "could," "should," "will," "intend," "plan," "anticipate," "believe," "estimate," "expect" and similar expressions, as they relate to CryptoLogic or our management, are intended to identify forward-looking statements. These statements include, without limitation, statements regarding cost savings expected to materialize from our reduced operating costs and restructuring plan; revenues anticipated from licensing contracts; and future cash generating activities, net profits, and earnings per share. Forward-looking statements reflect CryptoLogic's current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, without limitation, risks associated with CryptoLogic's financial condition and prospects, legal risks associated with Internet gaming and related governmental legislation and regulation, risks associated with market acceptance and technological changes, risks associated with dependence on licensees and key licensees, risks relating to international operations, risks associated with competition and other risks detailed in CryptoLogic's filings with securities regulatory authorities. These and other factors could cause CryptoLogic's actual results, performance or achievements that may be expressed or implied by such forward-looking statements to vary from those made in this press release, or that are otherwise made by or on behalf of CryptoLogic. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. CryptoLogic does not intend, and does not assume any obligation, to update these forward-looking statements.
Media Man Australia Profiles
CryptoLogic
CryptoLogic Gains New Channel to Market With Gaming Technology Solutions PLC
Top CryptoLogic games to be offered in multiple languages and currencies through leading global supplier of gaming platform solutions
DUBLIN, IRELAND, Jan 14, 2009 (MARKET WIRE via COMTEX) -- CryptoLogic Limited), a world leader in Internet casino and branded gaming software, today announced a strategic partnership with Gaming Technology Solutions PLC (GTS), a leading global supplier of platform solutions for online gaming operations.
The partnership is consistent with CryptoLogic's strategy to expand the number of market leading casino sites that offer the company's games. GTS's impressive list of tier one customers includes Unibet, bwin, 888, Expekt, and Betclick, as well as many other top brands.
Under the agreement, CryptoLogic's top-performing games will be made available to GTS customers through its Enhanced Gaming Engine (EdGE), a proprietary games platform. A range of 10 CryptoLogic games will be live on the platform for GTS customers by the end of the first quarter of 2009.
"Today, we connect CryptoLogic's leadership in gaming innovation with GTS' ability to serve top-tier gaming operators around the world," said Brian Hadfield, CryptoLogic's President and CEO. "This partnership is yet another example of how CryptoLogic is opening up powerful new distribution channels to get our market-leading games into the hands of more customers - and more players."
EdGE is an industry-leading, cross-channel content delivery platform that offers access to premier games created by world class developers like CryptoLogic. EdGE facilitates quick delivery of new content across multiple languages, including all European and most Asian languages (Chinese, Japanese and Korean), currencies and domains. Sports, casino, bingo, puzzle and soft games can all be delivered as browser-based or downloadable client products.
"Our operators demand and deserve market leading casino products - and CryptoLogic offers some of the world's most recognized brands and games," said Steven Matsell, GTS' Business Development Director. "To us, this partnership makes perfect sense."
In recent months, CryptoLogic has signed deals with 888.com, PartyGaming and Orbis, some of the biggest names in gaming.
With more than 200 games, CryptoLogic has one of the most comprehensive casino suites on the Internet today. CryptoLogic has earned rave reviews from industry peers and players alike, and in 2008 earned Gambling Online Magazine's Top Casino Software award for the third consecutive year. Based on the votes of players around the world, it is widely considered the industry's top honour.
About CryptoLogic(R) (www.cryptologic.com)
Focused on integrity and innovation, CryptoLogic Limited is a world-leading, blue-chip public developer and supplier of Internet gaming software. Its leadership in regulatory compliance makes it one of the very few companies with gaming software that is certified to strict standards similar to land-based gaming. WagerLogic(R) Limited, a wholly-owned subsidiary of CryptoLogic, is responsible for the licensing of its gaming software and services to blue-chip customers who offer their games around the world to non-U.S. based players. For information on WagerLogic, visit www.wagerlogic.com.
CryptoLogic's common shares trade on the Toronto Stock Exchange, the NASDAQ Global Select Market (CRYP) and the Main Market of the London Stock Exchange (CRP).
About Gaming Technology Solutions (www.gtsplc.com)
Formed in 2005, Gaming Technology Solutions (GTS plc) is a leading provider of cross channel gaming solutions for online gaming operations. As a truly "Open" platform and integration partner to operators GTS offer an impressive catalogue of successful game titles from all delivered on the world class EdGE platform.
CRYPTOLOGIC FORWARD LOOKING STATEMENT DISCLAIMER:
Statements in this news release which are not historical are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, risks associated with the company's financial condition and prospects, legal risks associated with Internet gaming and risks of governmental legislation and regulation, risks associated with market acceptance and technological changes, risks associated with dependence on licensees and key licensees, risks relating to international operations, risks associated with competition and other risks detailed in the Company's filings with securities regulatory authorities. These risks may cause results to differ materially from those projected in the forward-looking statements.
Media Man Australia Profiles
CryptoLogic
DUBLIN, IRELAND, Jan 14, 2009 (MARKET WIRE via COMTEX) -- CryptoLogic Limited), a world leader in Internet casino and branded gaming software, today announced a strategic partnership with Gaming Technology Solutions PLC (GTS), a leading global supplier of platform solutions for online gaming operations.
The partnership is consistent with CryptoLogic's strategy to expand the number of market leading casino sites that offer the company's games. GTS's impressive list of tier one customers includes Unibet, bwin, 888, Expekt, and Betclick, as well as many other top brands.
Under the agreement, CryptoLogic's top-performing games will be made available to GTS customers through its Enhanced Gaming Engine (EdGE), a proprietary games platform. A range of 10 CryptoLogic games will be live on the platform for GTS customers by the end of the first quarter of 2009.
"Today, we connect CryptoLogic's leadership in gaming innovation with GTS' ability to serve top-tier gaming operators around the world," said Brian Hadfield, CryptoLogic's President and CEO. "This partnership is yet another example of how CryptoLogic is opening up powerful new distribution channels to get our market-leading games into the hands of more customers - and more players."
EdGE is an industry-leading, cross-channel content delivery platform that offers access to premier games created by world class developers like CryptoLogic. EdGE facilitates quick delivery of new content across multiple languages, including all European and most Asian languages (Chinese, Japanese and Korean), currencies and domains. Sports, casino, bingo, puzzle and soft games can all be delivered as browser-based or downloadable client products.
"Our operators demand and deserve market leading casino products - and CryptoLogic offers some of the world's most recognized brands and games," said Steven Matsell, GTS' Business Development Director. "To us, this partnership makes perfect sense."
In recent months, CryptoLogic has signed deals with 888.com, PartyGaming and Orbis, some of the biggest names in gaming.
With more than 200 games, CryptoLogic has one of the most comprehensive casino suites on the Internet today. CryptoLogic has earned rave reviews from industry peers and players alike, and in 2008 earned Gambling Online Magazine's Top Casino Software award for the third consecutive year. Based on the votes of players around the world, it is widely considered the industry's top honour.
About CryptoLogic(R) (www.cryptologic.com)
Focused on integrity and innovation, CryptoLogic Limited is a world-leading, blue-chip public developer and supplier of Internet gaming software. Its leadership in regulatory compliance makes it one of the very few companies with gaming software that is certified to strict standards similar to land-based gaming. WagerLogic(R) Limited, a wholly-owned subsidiary of CryptoLogic, is responsible for the licensing of its gaming software and services to blue-chip customers who offer their games around the world to non-U.S. based players. For information on WagerLogic, visit www.wagerlogic.com.
CryptoLogic's common shares trade on the Toronto Stock Exchange, the NASDAQ Global Select Market (CRYP) and the Main Market of the London Stock Exchange (CRP).
About Gaming Technology Solutions (www.gtsplc.com)
Formed in 2005, Gaming Technology Solutions (GTS plc) is a leading provider of cross channel gaming solutions for online gaming operations. As a truly "Open" platform and integration partner to operators GTS offer an impressive catalogue of successful game titles from all delivered on the world class EdGE platform.
CRYPTOLOGIC FORWARD LOOKING STATEMENT DISCLAIMER:
Statements in this news release which are not historical are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, risks associated with the company's financial condition and prospects, legal risks associated with Internet gaming and risks of governmental legislation and regulation, risks associated with market acceptance and technological changes, risks associated with dependence on licensees and key licensees, risks relating to international operations, risks associated with competition and other risks detailed in the Company's filings with securities regulatory authorities. These risks may cause results to differ materially from those projected in the forward-looking statements.
Media Man Australia Profiles
CryptoLogic
Party Gaming Boss Predicts Industry Consolidation - 9th January 2009
Hard times will see only five major online poker sites on the Net, says Ryan
Party Gaming CEO Jim Ryan opines that in three year's time there will be only five major online poker sites of any consequence due to industry consolidation....and he intends to ensure that Party Poker is one of them.
Speaking to the UK newspaper The Financial Times, Ryan said: “We need to retake the hill and position ourselves to be that leader again.
“Our job, frankly speaking, is to take share back.”
But, he admitted, the increased competition in Europe may make it more expensive for his group to achieve its aims as current industry high-rollers like Poker Stars and Full Tilt up the ante when it comes to media buys and teaming up with marketing affiliates.
The FT reported that Ryan is finding it frustrating that Poker Stars and Full Tilt continue to take the risk of operating in the United States market, something Party Gaming ceased to do following the passage of the Unlawful Internet Gambling Enforcement Act in 2006. This created a significant competitive disadvantage for Party Poker, but he was nevertheless preparing the online poker site for the day when it might be able to legally re-enter the US market in the event of a change in the legislative landscape and a successful "clean slate" deal with the US Department of Justice.
Online Casino News Courtesy of Infopowa.
Media Man Australia Profiles
PartyGaming
PartyPoker.com
PartyCasino.com
Poker News
Online Casino News
Casino News
Party Gaming CEO Jim Ryan opines that in three year's time there will be only five major online poker sites of any consequence due to industry consolidation....and he intends to ensure that Party Poker is one of them.
Speaking to the UK newspaper The Financial Times, Ryan said: “We need to retake the hill and position ourselves to be that leader again.
“Our job, frankly speaking, is to take share back.”
But, he admitted, the increased competition in Europe may make it more expensive for his group to achieve its aims as current industry high-rollers like Poker Stars and Full Tilt up the ante when it comes to media buys and teaming up with marketing affiliates.
The FT reported that Ryan is finding it frustrating that Poker Stars and Full Tilt continue to take the risk of operating in the United States market, something Party Gaming ceased to do following the passage of the Unlawful Internet Gambling Enforcement Act in 2006. This created a significant competitive disadvantage for Party Poker, but he was nevertheless preparing the online poker site for the day when it might be able to legally re-enter the US market in the event of a change in the legislative landscape and a successful "clean slate" deal with the US Department of Justice.
Online Casino News Courtesy of Infopowa.
Media Man Australia Profiles
PartyGaming
PartyPoker.com
PartyCasino.com
Poker News
Online Casino News
Casino News
Sunday, January 11, 2009
Buoyant Playtech amasses $300m war chest, by Pan Kwan Yuk - Financial Times - 3rd September 2008
Playtech, the gambling software developer, said it had built up a war chest of more than $300m (£168m) to spend on acquisitions as it announced a 45 per cent rise in half-year pre-tax profit.
The company, whose clients include PartyGaming and Paddy Power, said it expected new markets to open up in Europe as gambling regulations eased. It was lining up acquisitions that would allow the company to take advantage of those opportunities.
Playtech is in the process of completing due diligence on a potential acquisition of an online marketing company – a deal that Mor Weizer, chief executive, said would significantly enhance the company’s profitability.
Mr Weizer said this was not the only acquisition target on the company’s radar and that it was looking for groups with new games that it could move to its own platforms.
For the six months to the end of June, revenue rose more than 85 per cent to $81m, after it sold more online games and won new licensing agreements.
Playtech sells a number of different gaming software products, including online casino, poker and bingo, to companies such as Party Gaming, and takes a typical cut on every transaction of 15 to 20 per cent from operators.
Income from casino rose 78 per cent to $58m and poker revenue more than doubled to $22m. Pre-tax profit increased from $26m to $38m.
Last month, the company announced a licensee deal with Italy’s Snai, one of the largest land-based betting outfits in the country. Mr Weizer said he expected more deals to come as countries such as Spain, France and Poland moved towards online gaming regulations.
The dividend increases from 6.1 cents to 12 cents. Shares in Playtech rose 6½p to 541½p, giving a market capitalisation of £1.29bn.
● FT Comment
Playtech has delivered another period of good growth and Wednesday’s outlook statement appears upbeat with the company saying it has a strong pipeline of potential licensees scheduled for the second half. The additional licensees, combined with the contribution from new product launches, continue to drive growth. But with the shares trading at 19 times 2008 earnings, a premium to the wider online gaming sector, the stock looks fully priced. (Credit: Financial Times)
Media Man Australia Profiles
Financial News
Technology News
The company, whose clients include PartyGaming and Paddy Power, said it expected new markets to open up in Europe as gambling regulations eased. It was lining up acquisitions that would allow the company to take advantage of those opportunities.
Playtech is in the process of completing due diligence on a potential acquisition of an online marketing company – a deal that Mor Weizer, chief executive, said would significantly enhance the company’s profitability.
Mr Weizer said this was not the only acquisition target on the company’s radar and that it was looking for groups with new games that it could move to its own platforms.
For the six months to the end of June, revenue rose more than 85 per cent to $81m, after it sold more online games and won new licensing agreements.
Playtech sells a number of different gaming software products, including online casino, poker and bingo, to companies such as Party Gaming, and takes a typical cut on every transaction of 15 to 20 per cent from operators.
Income from casino rose 78 per cent to $58m and poker revenue more than doubled to $22m. Pre-tax profit increased from $26m to $38m.
Last month, the company announced a licensee deal with Italy’s Snai, one of the largest land-based betting outfits in the country. Mr Weizer said he expected more deals to come as countries such as Spain, France and Poland moved towards online gaming regulations.
The dividend increases from 6.1 cents to 12 cents. Shares in Playtech rose 6½p to 541½p, giving a market capitalisation of £1.29bn.
● FT Comment
Playtech has delivered another period of good growth and Wednesday’s outlook statement appears upbeat with the company saying it has a strong pipeline of potential licensees scheduled for the second half. The additional licensees, combined with the contribution from new product launches, continue to drive growth. But with the shares trading at 19 times 2008 earnings, a premium to the wider online gaming sector, the stock looks fully priced. (Credit: Financial Times)
Media Man Australia Profiles
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