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CryptoLogic Inc., a leading software developer to the Internet gaming and e-commerce industries, announced today its financial results for the second quarter and six months ended June 30, 2003. Strong second quarter results exceeded expectations and signify that the company’s business continues to build on a solid platform of organic growth, international expansion and new
products.“CryptoLogic continues to execute well, and the seasonably strong second quarter was our best
performance in the last year and a half,” said Lewis Rose, CryptoLogic’s President and CEO. “We’re
making meaningful strides in what continues to be a challenging market. At CryptoLogic, we’ve been
focusing on the fundamentals, and diversifying both our products and our geographic markets. Our
strategy is paying off with revenue up more than 20% and earnings up more than 25% over last year.”CryptoLogic’s second quarter highlights included:
• Strong revenue and earnings performance resulted in diluted earnings per share of $0.21 that surpassed analysts’ consensus of $0.15;
• Continued favourable growth in overseas markets with licensees’ revenue from international sources rising to approximately 55% in the first half of 2003, up from almost 50% in the first quarter;
• Steady growth in poker and bingo revenue, together on track to exceed 10% of 2003 revenue, up from nil in the second quarter last year;
• Commenced the application process for listing and trading on the London Stock Exchange to leverage CryptoLogic’s strong roster of UK-based customers and operations, and to extend its reach into this favourable international market for online gaming.
Stronger-Than-Expected Q2 Performance (All financial figures are expressed in U.S. dollars)In the second quarter, CryptoLogic surpassed expectations by recording $10.8 million in revenue, net income of $2.6 million and diluted earnings per share of $0.21. This also compared strongly to second quarter results in 2002, in which the company posted revenue of $8.9 million and net income of $2.0 million or $0.16 per diluted share before a non-recurring special charge, and a net loss of $7.8 million or $0.65 per diluted share after the special charge.
CryptoLogic continued to execute well on its strategic imperatives as reflected in the strength of its 2003 second quarter results. This better-than-expected performance was evidence of increased deposits driven by a stabilized base business, increased international penetration with existing and new customers, and marketing initiatives including the continued success of the company’s recently introduced poker and
bingo products.That’s a positive press release meaning that they are planning on remaining in this business for years to come.
What an interesting statement:
• Steady growth in poker and bingo revenue, together on track to exceed 10% of 2003 revenue, up from nil in the second quarter last year;
I wonder how much of this was poker versus bingo. For example, 9% poker 1% bingo? 9.9% poker. 0.1% bingo?
Antoine
If I had to guess I would say the ratio is very close to 95% poker 5% Bingo in terms of new revenues.
I am earning decent revenues with Poker now, but Bingo has never created more then pocket change at my sites.
That is encouraging, especially since I do own some stock there.
Casino folk and Bingo folk are completely different animals and they rarely mix.
I noticed some occasional mixing by female slots players. That is why so many bingo sites also offer slots.
Bingo is being marketed all the wrong ways. Casinos jumped on Bingo and tought they had the marketing all in place. Big mistake.
I feel stupid for not having any crypto stock… but i stayed away from anything gambling related due to the uncertainties with the law. I have made a killing with looksmart and overture a few times. Nonetheless I really wouldn’t touch overture at these levels
Antoine
I forgot to post that i agree with you about bingo being marketed the wrong way. Then again bingo halls are in every two bit town and bingo is so accessible versus poker rooms.
I did consider the possibility of starting my own bingo room with the same software that powers party bingo, they are more or less the microgaming of bingo. To summarize it would cost 50k upfront plus a small licensing fee, and then the bingo room would share players with other bingo rooms in a set up similar to prima poker.
I think that if the top webmasters invested in this we would make a killing, but i’m personally not considering it unless laws in the us improve since bingo more than any other type of gambling is a north american phenomenon.
Antoine
