European ambitions
One of the industry’s top turnkey providers, Cryptologic offered their customary conference facility in conjunction with the release of their latest figures last week, and their future plans can be summarised from their responses to various questions from analysts and reporters.
Current strategy includes a plan for an integrated casino, bingo and poker package that players can use from one e-account.
The company is in a very strong cash position – US$44.1 million in cash as at end of 2002
Six new payment processing methods have been added and more are to come in answer to the banking squeeze and legislative threats to the industry, and this aspect enjoys top priority.
Cryptologic is very pleased with acquiring Isle of Man approved status for its software and is currently awaiting Alderney approval, too.
Due to the uncertain legislative environment in the USA, the company is focusing Slot Gacor efforts outside of North America with particular emphasis on the European market. Cryptologic remains committed to international expansion with blue-chip customers.
They have reduced the corporate head count by 8% in an attempt to cut costs this year.
They are seriously considering certain acquisitions, but they are playing this close to the chest and will only make announcements at the appropriate time. Asked what sector these acquisitions might occupy the reply was gaming software, ecash customer management systems and maybe additional distribution channels, such as TV and wireless.
Non-North American revenues are now at the 45% level, a significant switch away from the US market.
In answer to a question regarding what percentage of revenue is from clients who also have land-based casino interests, they pleaded confidentiality but seemed to be prepared to speak privately outside the conference call to analysts.
They are bullish on Europe and expect this part of their business to increase.
When asked to confirm what their goal for quality licensees would be in 2003, they reiterated it would be four a year.
Accounts payable are up but this is affected by licensee timing of payments
A questioner asked whether the industry was still as competitive, and they used the word “intense”. They feel that they have a competitive advantage in their poker, and that their multiplayer is highly effective. The marketing effort continues to build toward critical mass. Bingo was mentioned as having been “updated.” and as having considerable potential. Cash payment alternatives have become a major business attraction. They feel that for the quality and “staying power” of the product their revenue structure is competitive, and they reward the licensees for their efforts based on the volume they create.
Another questioner asked whether any deals had been signed with Atlantic City casinos, which they fudged by saying that they continue to develop relationships with Vegas and AC, but are not really optimistic in the short term due to the political and vested interests factors. However, the company is well placed to take advantage of any breakthroughs following their success in passing the stringent Isle of Man requirements.
