Gambling News - May 2005 Edition

"Gambling Software Firm Cryptologic's Q1 Profit Jumps to US $4.8 M from US $3.8M"

CryptoLogic’s annual profits jump by a million dollars in 2005.

CryptoLogic, a Toronto based company, developing software for Internet gambling, are concentrating their resources on the already established Internet gambling markets.

They have also developed games for wireless technologies too, but are playing it safe for now and continuing with their core business. Lewis Rose, CEO of CryptoLogic, explained this approach and said “We have developed four games for wireless ourselves, but we are not convinced that the economic model justifies the capital expenditure.” He added, “As far as wireless is concerned, there are a number of intermediaries who would demand their slice of the pie. We believe at this point – that given the take-up, given the technology challenges, given the user or player experience and given the revenue model – we’re not convinced that right now is the time for us.”

Earnings for CryptoLogic soared one million dollars, from 3.8 million dollars a year earlier, to 4.8 million dollars in 2005. CryptoLogic attributes its resounding success to its strong focus on the online casino and online poker markets. Earnings for the first quarter, which ended March 31 st, amounted to 34 cents a share compared to 28 cents a share last year during the same time period.

CryptoLogic is encouraged by the British government’s decision to enact a law that would regulate Internet gambling, and like many other companies involved in the Internet gambling industry, CEO Rose believes that Britain’s decision is a sign of the growing acceptance of fact that the online gaming industry is here to stay.

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