Cryptologic Shares Rise on Use of Internet Gambling
Software
Toronto, Jan. 14 (Bloomberg) -- Cryptologic Inc.
stock rose 26 percent after the company said William
Hill Plc began using its software, allowing Internet
users to make sports wagers through the U.K.'s
second-largest betting shop owner.
Shares of Cryptologic rose C$6.95 (US$4.79) to
C$33.95 in Toronto, a 52-week high.
Cryptologic, which makes Internet gambling software,
first announced its alliance with bricks-and-mortar
casino operator William Hill in October. Bear,
Stearns & Co. analyst Jason Ader praised it in a
report earlier this week. ''We believe that these types
of alliances in the casino industry will be a natural
progression, because all of the companies involved
are essentially in the same business,' Ader said in the
report.
London-based 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.
Toronto-based Cryptologic gets a fee for licensing its
software and an undisclosed portion of revenue
generated by Internet games.
It had been testing the software in trials for a month.
The company plans an international expansion to gain
a larger share of an industry it estimates will grow to
US$3 billion within two years. ''The exposure is
there, the market is there ... and William Hill is a big
company,' said Marc-Andre Chouinard, an analyst
with CTI Capital Inc. in Montreal.
In September, Cryptologic said its third-quarter net
income rose to US$4.8 million or 31 cents a share,
from US$3.3 million, or 22 cents a year ago.
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