CryptoLogic Delivers Record Results in Q2 2006
Market Wire, August, 2006
On August 1, CryptoLogic's Board of Directors declared its next quarterly cash dividend of US$0.12 per share, payable on September 15, 2006 to shareholders of record on September 8, 2006.
RESULTS OF OPERATIONS
Revenue
In Q2 2006, CryptoLogic grew its revenue 52% to a record $30.4 million (Q2 2005: $19.9 million) despite the fact that Q2 is typically a slower quarter for Internet gaming (see Revenue trends in this MD&A) and that the attention of poker players was diverted by the FIFA World Cup, which ran from June 9 through July 9. Revenue in the quarter was better than expected due to strong organic growth at licensees' properties, particularly in online casino. Revenue for the first half of 2006 increased 43% to $57.3 million (Q2 2005 YTD: $40.2 million).
Internet Casino
Q2 2006 Internet casino fees were better than expected and grew 53% to $17.9 million (Q2 2005: $11.7 million). Although Q2 is typically a slower quarter, Q2 2006 Internet casino fees were 19% higher than in Q1 2006 (Q1 2006: $15.0 million). Casino fees accounted for 59% of total Q2 2006 revenue. For the year to date, Internet casino software revenue grew 32% to $32.9 million and represented 57% of total revenue (Q2 2005 YTD: $24.9 million; 62% of total revenue).
Casino software and support services fee revenue is calculated as a percentage of a licensee's level of activity in its online casino site. Such revenue is affected by the number of active players on licensees' sites and their related gaming activity. In turn, these results are influenced by a variety of factors, including the effectiveness of our licensees' marketing programs, the entertainment value of CryptoLogic-developed casino games, and the frequency and success of new offerings.
In order to help licensees offer a fresh and dynamic entertainment experience that attracts and retains players, CryptoLogic typically releases new casino game packs twice each year-in Q2 to help offset seasonality in the warmer months and in Q4 to fuel typically strong demand in the colder months. The significant improvement in both Q2 2006 and year-to-date casino licensing revenue over the comparable periods of 2005 was attributable to organic growth at our licensees' sites, driven largely by the success of the innovative new, high-margin games launched this quarter and previously.
The release in Q2 2006 of 11 new casino games contributed significantly to licensing revenues in the quarter. Exciting, high-margin slot game titles, like an updated version of Rags to Riches, Sweet Thing and the new Marvel Super Hero-themed games based on Thor and Silver Surfer, performed well. The industry's first-ever online version of the popular land-based casino game, Texas Hold'Em Bonus Poker, was also a stand-out. Also, Bejeweled and Millionaires Club(TM) continued to draw significant wagering at our licensees' sites. At $3.7 million, the Millionaires Club(TM) jackpot continues to be the highest jackpot in online gaming history.
Based on the enduring popularity of our games, CryptoLogic expects to be able to partially offset typical Internet casino seasonality in Q3, when players tend to spend less time indoors gaming (see Revenue trends in this MD&A).
- 5 Rules for Immediate Annuities
- Death in the Family: 12 Things to Do Now
- Dumbest Things You Do With Your Money
- 6 Online Networking Mistakes to Avoid
- 401(k) Mistakes to Avoid
- 5 Economic Scenarios to Keep You Up at Night
- The Real ‘Best Places to Retire’
- Best Credit Cards for You
- 12 Tough Questions to Ask Your Parents
- The Real ‘Best Colleges’
- Home Buyer Tax Credit: How to Cash In
- Why You Shouldn't Bash Cash
- 8 Phony 'Bargains' and Better Alternatives
- Danger: 3 Debit Card Scams to Avoid
- 6 Myths About Gas Mileage
- 29 Fees We Hate Most
- Quick and Easy Ways to Boost Returns
- Best Stocks to Buy Now
- Lower Your Taxes: 10 Moves to Make Now
- New Jobs: 8 Lessons from Real-Life Career Switchers
- The New Job Market: Who Wins and Who Loses?
- Health Care Reform's Public Option: Everything You Need to Know
- Volunteer Work When Unemployed: Should You Work for Free?
- Whose Recovery Is This?
- Long-Term-Care Insurance: 4 Biggest Risks to Avoid
Content provided in partnership with
Most Recent Business Articles
- Multiple criteria evaluation and optimization of transportation systems
- Multi-criteria analysis procedure for sustainable mobility evaluation in urban areas
- A two-leveled multi-objective symbiotic evolutionary algorithm for the hub and spoke location problem
- Multi-criteria analysis for evaluating the impacts of intelligent speed adaptation
- The development of Taiwan arterial traffic-adaptive signal control system and its field test: a Taiwan experience
Most Recent Business Publications
Most Popular Business Articles
- 7 tips for effective listening: productive listening does not occur naturally. It requires hard work and practice - Back To Basics - effective listening is a crucial skill for internal auditors
- LIFO vs. FIFO: a return to the basics
- FAS 109: a primer for non-accountants - Financial Accounting Standards Board's "Statement 109: Accounting for Income Taxes"
- Too Young to Rent a Car? - 25-years-old the minimum age for car renting - Brief Article
- Design a commission plan that drives sales - Sales Commissions
Presented by American Express