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Sniper
10-24-2005, 01:10 PM
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-- Other poker licensees experiencing record levels, up approximately 100% year-to-date
CryptoLogic Inc. (TSX:CRY - News; NASDAQ:CRYP - News; LSE:CRP - News), 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.

Sniper
10-24-2005, 01:11 PM
NEW YORK, Oct 24 (Reuters) - Gaming software developer CryptoLogic Inc. (CRYP.O: Quote, Profile, Research) said on Monday that its exclusive agreement with Britain's Betfair, a poker-software customer, will continue until at least June, with an option to extend until January 2007.
As a result, CryptoLogic expects no material effect on its 2005 and 2006 results.

According to a CryptoLogic statement, Betfair is proceeding with its plan to bring its poker software in-house.

CryptoLogic said on Aug. 9 that it could lose Betfair's business, and the company's shares slipped roughly 17 percent in trading that day.

TGoldman
10-24-2005, 02:33 PM
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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.

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There's a nice nugget of information tucked away inside the press release. It could be a preview of a solid earnings guidance for Crypto's conference call on Thursday, November 3, 2005. Also recall it was the Betfair announcement that originally triggered Crypto's long slide downward. With the whole Betfair situation no longer an issue for the time being, I see bright things for the immediate future of the stock.

Sniper
10-24-2005, 04:36 PM
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I see bright things for the immediate future of the stock.

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You are not the only one... CRYP +8% today

TGoldman
10-24-2005, 06:09 PM
[ QUOTE ]
[ QUOTE ]
I see bright things for the immediate future of the stock.

[/ QUOTE ]

You are not the only one... CRYP +8% today

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CRYP had a nice run today, but it was a rally on surprisingly light volume. I'd like to see some more widespread buyer conviction before I gain full confidence. In the past few months, CRYP has had a series of single day run-ups on light volume due to various announcements but the stock has never held traction, giving up most of the gains in the following days. Nevertheless, I'm optimistic about their earnings report next week, and still believe that good things are in store for their stock in the next few weeks.

Lansky
10-25-2005, 10:29 PM
"Betfair fees have typically accounted for 5-10% of the company's revenue"
Hope this is a typo, and they mean POKER revenue, any know?

Good call on retracement btw....