Cryptologic Signs Agreement With U.K.'s William Hill
(Update2)
Cryptologic Signs Agreement With U.K.'s William Hill (Update2)
(Updates with closing share price.)
Toronto, Oct. 12 (Bloomberg) -- Cryptologic Inc. signed an agreement
with William Hill Plc, the U.K.'s second-largest betting-shop operator,
to provide software for Internet gambling.
The Toronto-based software company said the agreement, which
includes providing support services, will be set by the end of the month.
It would not disclose financial terms. Shares of Cryptologic rose
C$2.25 (US$1.52), or 13 percent, to C$19.25 in Toronto trading.
Earlier the stock touched C$19.45.
William Hill accounts for 42 percent of the U.K.'s telephone betting,
with more than 150,000 registered clients. It has more than 1,500
outlets. Cryptologic gets a fee for licensing its software and an
undisclosed portion of revenue generated by Internet games.
William Hill had gross wagering revenue of 1.8 billion pounds
(US$2.98 billion) in 1998, Cryptologic said. ''I think this is a new
benchmark for us,'' said Jenny Solursh, Cryptologic senior
vice-president. ''We see tremendous potential for what their brand
name can bring to the online market,'' she said in an interview.
Cryptologic sells more than 20 casino-style computer games, including
blackjack, to companies that run gambling sites. It licenses its software
mainly to Internet casinos through a wholly owned subsidiary,
Intertainet Overseas Licensing Ltd. The company said last month it filed
for a listing on the Nasdaq Stock Market. ''The (William Hill)
agreement establishes Cryptologic as a leader in the field,'' said
Brandon Osten, an analyst with Sprott Securities Ltd. in Toronto who
ranks the company a ''speculative buy.''
Cryptologic had 1998 net income of US$16.7 million. Net income for
the second quarter climbed to US$4.9 million, or US$0.32 a share,
from a year-earlier US$3.3 million, or US$0.22. The company reports
in December in U.S. dollars. |
