Betfair stays with Cryp through june of 2006 and maybe longer. Meanwhile, poker revenues up nearly 100%. Oh, yeah, that is the reason the stock has crashed. <VBG>
October 24, 2005 06:00 AM US Eastern Timezone
CryptoLogic Confirms Betfair Continues Relationship Until At Least June 2006 With No Material Financial Effect In 2005 and 2006
TORONTO--(BUSINESS WIRE)--Oct. 24, 2005--
ALL DOLLAR AMOUNTS IN US$
Other poker licensees experiencing record levels, up approximately 100% year-to-date
CryptoLogic Inc. (TSX:CRY)(NASDAQ:CRYP)(LSE:CRP), a leading software developer to the global Internet gaming market, confirmed today that Betfair, one of the company's poker software licensees, will continue its exclusive agreement with WagerLogic Limited, CryptoLogic's licensing subsidiary, until June 2006, with an option to extend until January 2007. As CryptoLogic indicated in August, Betfair has embarked on plans to bring its poker software in-house, in line with its long term strategy to own and operate all of its core products. As part of this agreement, WagerLogic will receive fees from Betfair such that it is expected there will be no material effect on CryptoLogic's 2005 and 2006 results.
Betfair's decision to establish its own internally-operated poker room is in keeping with its core competency as a technology-driven betting company. Other WagerLogic customers, which are primarily gaming and/or casino organizations, continue to benefit from the liquidity, outsourced technical expertise and an ever-expanding game and product offering developed by CryptoLogic.
"We have enjoyed a mutually profitable relationship with Betfair, and we are pleased that the relationship will continue in 2006," said Lewis Rose, CryptoLogic's President and CEO. "CryptoLogic has grown into a well-diversified organization - in its customers, products and markets. This means continued growth from our core customers, continued financial strength to invest in new products, and the continued prospect of new partnerships."
"Betfair has built a fast-growing Internet poker business as part of WagerLogic's central poker room, and we are pleased to continue this association into the coming year," said A.J. Slivinski, WagerLogic's Managing Director.
A year of excellent growth continues
WagerLogic's central poker room, shared by all of its poker licensees, continues to be one of the fastest-growing poker rooms on the Internet. Excluding Betfair, revenue from WagerLogic's other poker licensees is up approximately 100% on a year-to-date basis over the same period in 2004. Although Betfair fees have typically accounted for 5-10% of the company's revenue, CryptoLogic expects to continue its record of profitable growth from strong poker revenue from continuing licensees, healthy results from its core casino business, and the potential signing of new licensees that meet the company's rigorous criteria.
About CryptoLogic(R) (www.cryptologic.com)
Focused on integrity and innovation, CryptoLogic Inc. is a world-leading, blue-chip public developer and supplier of Internet gaming software. CryptoLogic's leadership in regulatory compliance makes it one of the very few companies with gaming software that is certified to strict standards similar to land-based gaming. WagerLogic Limited, a wholly-owned subsidiary of CryptoLogic, is responsible for the licensing of the company's gaming software and services to a blue-chip customer base worldwide. For information on WagerLogic(R), visit www.wagerlogic.com.
CryptoLogic's common shares trade on the Toronto Stock Exchange (symbol: CRY), on the NASDAQ National Market (symbol: CRYP), and on the Main Market of the London Stock Exchange (symbol: CRP).
CRYPTOLOGIC FORWARD LOOKING STATEMENT DISCLAIMER:
Statements in this press release which are not historical are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, risks associated with the Company's financial condition and prospects, legal risks associated with Internet gaming and risks of governmental legislation and regulation, risks associated with market acceptance and technological changes, risks associated with dependence on licensees and key licensees, risks relating to international operations, risks associated with competition and other risks detailed in the Company's filings with securities regulatory authorities. These risks may cause results to differ materially from those projected in the forward-looking statements.
CryptoLogic Inc. (TSX:CRY) (NASDAQ:CRYP) (LSE:CRP)
Contacts
CryptoLogic
Nancy Chan-Palmateer
Director of Communications
(416) 545-1455
OR
Argyle Rowland Communications
Daniel Tisch
(media only)
(416) 968-7311 ext. 223
dtisch@argylerowland.com
OR
Argyle Rowland Communications
Karen Passmore
(media only)
(416) 968-7311 ext. 228
kpassmore@argylerowland.com
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