Playtech and CryptoLogic provide online casino and online poker software platforms for the online gambling industry. Both companies have now released their Q1 2007 financial reports for shareholders and investors.
PlayTech (AIM:PTEC) provides arguably the best online casino software platform in the industry, and is used by many online casinos, such as 32 Vegas Casino and Aqua Lounge Casino.
Playtech’s online poker network (iPokerNetwork) struggled initially but has been growing steadily. The entire Tribeca online poker network recently migrated over to iPokerNetwork, increasing player numbers substantially.
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Playtech’s Q1 revenues rose to $19.8m, a 14% increase from Q4 2006. Playtech’s online poker network saw its best results yet, with a 58% increase in revenues, compared with Q1 2006.
Playtech withdrew from the US market following the UIGEA, and has been focusing its attention on emerging markets like Asia. Revenues from non-US market were up 22% compared with Q4 2006, and Playtech saw a non-US player revenue increase of 85% compared with Q1 2006.
It is expected that Playtech will continue to perform strongly this quarter, despite very slow progress in the Asian market.
PlayTech (AIM:PTEC) is currently trading at 383p (at time of writing).
CryptoLogic (TSX:CRY) is a dominant player in the European market, with dozens of British online casinos and poker rooms using their software platforms. InterCasino, one of the largest online casinos in the world, uses CryptoLogic software.
CryptoLogic’s online poker network has been strong in recent times with the World Poker Tour (WPT) migrating across to their network, which is an exciting development and has the potential to add a large number of poker players to the network.
Despite this, CryptoLogic reported a 27% drop in revenues for Q1 2007, compared with the same quarter last year. The Canadian company reported Q1 2007 profits of $1.5m. Like Playtech, CryptoLogic also pulled out of the US market late last year.
CryptoLogic is expecting a disappointing second quarter, and shares of the company have dropped sharply upon release of the results.
CryptoLogic (TSX:CRY) is currently trading at $26.25 (at time of writing).