by Hillary LaClair, Senior Editor
Despite the increasingly desperate global economic crisis, the online casino industry has been able to take it on the chin. One internet gambling provider, Cryptologic, has released its third quarter results as well as the details of their new growth strategy.
The third quarter results showed revenue of $14 million after a net loss of $5.9 million - $4.2 million of which is attributed to foreign exchange loss. The foreign exchange loss is due to the decreasing value of the U.S. dollar against the UK sterling and the Euro. As a result, the company has transferred a great deal of its finances and marketable securities into U.S. dollars to minimize the impact of further currency market volatility.
The company remains hopeful for 2009 with a slew of new customer wins and a strategic partnership with Boss Media made to facilitate operating expenses and increase profitability. Cryptologic expects to cut annual operating costs by at least $12 million.
The partnership is the means to which the company plans to achieve revenue growth and profitability, putting more emphasis on popular online casinos and their games. The agreement will help the company to build more on its list of major casino customers and leadership in the industry.
“In a challenging year for our company and our industry, we recognize that we must do better – and that is why CryptoLogic is aggressively implementing its strategy to achieve profitability and growth in 2009,” said President and CEO Brian Hadfield. “Cryptologic’s proven casino offering is attracting new customers more swiftly than ever before, and our branded games have earned the confidence of some of the world’s biggest gaming operators. And we have already begun reducing our operating costs – a trend that will continue as we implement our new poker partnership.”
All things considered, Cryptologic has had a better year than most, reporting business opportunities such as the licensing of its games to 888.com and PartyGaming, the success of which prompted 888.com to order 10 more games.
In August, Cryptologic announced a three year contract with the Gaming Media Group Limited, a television network dedicated to gaming. Cryptologic is scheduled to develop an online casino for the company, expected to be available later this year, in 5 different languages. Another three year contract was signed with Sky Betting and Gaming who will use a selection of non-downloadable games on their website.
Cryptologic has designed a new website for Betjacks which went online on Election Day. A mutli-year licensing contract was signed with GigaMedia Limited, offering casino software across the Everest Gaming platform.
The company has also released a number of popular themed games suchs as Sub-Mariner, and Marvel Super Hero as well as 4 Deck Mult Hand Video Blackjack, a patent-pending product.
At the end of the third quarter, Cryptologic released Bonus Pack 15, a seven game lineup including Merian C. Cooper’s King Kong, Casinomeister portal, European Blackjack and an upgraded European Roulette software.
Finally, Cryptologic signed an agreement with NextGen Gaming on Novemer 7th, agreeing to work together on the development and distribution of online casino games.