Betfair poker relationship winds down as announced previously; Other poker licensees grew solidly, with revenue up 47% in most recent quarter
September 1, 2006 (Toronto, ON) - CryptoLogic Inc., a leading software developer to the global Internet gaming market, confirmed today the previously announced plans that Betfair, one of the company?s poker-only customers, will move to an in-house technology solution at the end of October 2006. As previously announced, Betfair?s departure is expected to have no material adverse effect on CryptoLogic?s 2006 financial results.
"As a technology company, Betfair is unique amongst our customer base so this is a natural progression for them. We are pleased to have enjoyed a mutually beneficial relationship," said Lewis Rose, CryptoLogic?s President and CEO. "CryptoLogic?s record 2006 year-to-date earnings show that we continue to profit from a well-diversified portfolio of products, clients and markets. With the recent announcement of Playboy joining CryptoLogic?s blue-chip Internet casino and poker client base, we look forward to continued growth overall."
The company has recorded excellent growth in the Internet poker market. Excluding Betfair, fees from WagerLogic Limited?s (CryptoLogic?s licensing subsidiary) licensees grew 47% on a year-over-year basis in the second quarter of 2006. While Internet poker accounted for 31% of CryptoLogic?s Q2 2006 revenue, CryptoLogic?s core Internet casino software business to deliver excellent results. Casino, which grew 53% from a year ago, remained the company?s largest profit contributor at 59% of Q2 revenue.
"WagerLogic continues to benefit from CryptoLogic's strong market position, its reputation for integrity and its relationships with some of the world?s most recognized entertainment brands," said A.J. Slivinski, WagerLogic?s Managing Director. "This position is underscored by strong organic growth and new licensees such as Playboy signing up to use both our casino and poker offering."