Cryptologic Positioned for Success

In most online gambling sectors last year revenues were not at an all time high. Consistent with the trend Cryptologic one of the original software providers for the online gambling industry made less money. This actuality was caused by and large by lower wagering activity across the boards, adverse currency fluctuations and a reduced contribution from one of Cryptologic's major licensees. The company has undergone growth potential adjustments and has been responsible in reducing it's base fixed yearly operating costs by $20.6 million. Prepared now for increased revenues, the company has signed deals with DC Comics to develop wagering games featuring Batman, Superman and Wonder Woman; and with Paramount Digital Entertainment for more games based on 20 movies including Braveheart, Forrest Gump and Ghost. Cryptologic has expanded it's licensee portfolio by 20 to more than 30 Internet gaming operators including, Betfair, Sportingbet, Totesport and Virgin Games. These are some big players in the online wagering world and are sure to prove profitable for Cryptologic. The company's investment in a major rebranding of the software a new look and more targeted advertising are positive steps to stimulate larger revenues. Brian Hadfield, Chief Executive Officer, of the firm said, "2009 was a tough year as a number of adverse factors including a global economic downturn overshadowed the company's progress in implementing its innovative new strategy to reduce costs and return to growth." Adding, "We have entered 2010 in better shape with a substantially reduced cost base that will continue to be managed tightly. At the same time, new business momentum remains encouraging as branded games continue to roll out and hosted casino licensees implement new initiatives. With new licensing activity staying strong and the overall online casino/gaming market showing some improvement, we look to the year with cautious optimism." Ever popular branded game development for BetClic, Rank Interactive and UniBet will also push Cryptologic's growth in the 2010.