Cryptologic Ending The Year With A Bang
Published: Friday, February 25, 2005 Online-Casinos.com
CryptoLogic fourth-quarter revenue up 33 percent, profit up 25 percent
Canadian turnkey provider CryptoLogic Inc.'s move to capitalise on the demand for online poker has paid off in spades, it seems. The Internet casino and poker software firm has posted a 25 percent fourth-quarter profit gain, revenues up by a third and an increase in share price of more than seven per cent.
"We saw the large, untapped market opportunity of online poker and we leveraged our reputation for innovation and strong brand-name licensees to establish a very significant position in online poker," says Lewis Rose, CryptoLogic's president and CEO.
"This approach has paid off in spades."
The group made $3.8 million, or 27 cents per share, in the three-month period ended Dec. 31 ($3 million in the corresponding 2003 period.) Shares in Cryptologic rose $2.29, or 7.36 per cent, to $33.39 on the Toronto Stock Exchange on the heels of the announcement.
For the full 2004 year, the company made $13.7 million, or $1.01 per share. It made $9.4 million, or 75 cents per share, in 2003. Annual revenue increased to $63.7 million from $44.2 million.
Calling 2004 a "blue-chip year," Rose said that the results stemmed from the company's strategy to diversify internationally, provide market-oriented products and regulatory leadership. "We succeeded in 2004 by sticking to these strategies and remaining disciplined in our execution."
Quarterly revenue jumped to $17.9 million from $13.5 million the year before, helped by a 20 per cent rise in online poker contributions. Internet casino revenue was also up by 15 per cent over the fourth quarter of 2003.
"Traffic at our central poker room has increased to more than 5,300 players online simultaneously," Rose said. "New versions of Cryptologic's online poker software, delivering multi-table and satellite tournament capabilities, have been a huge marketing draw for players (and that) has fuelled this growth."
InfoPowa recently reported that the company renewed a multi-year exclusive agreement with the Ritz Club London Online for the use of its online casino and poker software.
Other key drivers of the company's improving results were publicity from its first live poker tournament in December, the televised Caribbean Poker Classic, and an expanded casino game portfolio, particularly in the popular slot category, which helped growth in Internet casino revenue.
The view ahead is looking positive too, according to Rose who estimated that a traditionally strong first quarter 2005 should result in revenue ranging between $19 million and $19.4 million.
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