CryptoLogic Poker Network Outsourced by March 09Cryptologic Makes Moves in 2009 with Strategic Restructuring Plan |
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Through a partnership with GTECH Corporation's International Poker Network, the plan had been to outsource its poker network in order to improve poker room liquidity and reduce its operating costs. This move is to be completed by the end of the first quarter of 2009, and will benefit the company's poker licensees and players by giving them access to a larger network.
Since the growth strategy was outlined in Oct. 2008, CryptoLogic has made great efforts to see it through including the acquisition of new customers such as 888.com, PartyGaming, GigaMedia, Orbis, and Betjacks. Its newly contracted customers are expected to generate new revenues of at least $8 million in 2009.
It will also continue to expand its casino business through licensing contracts, with a new 2009 business plan.
From these new strategies and changes, the company expects:
- Return to profitability and cash generation from the second quarter of 2009
- Full year cash generation post restructuring of $11-$13 million
- Net profits in the range of $9-$10 million
President of CryptoLogic, Brian Hadfield, said, "CryptoLogic has taken radical steps to focus on its core strengths as a developer of exciting online gaming content. We are on track to return to profitability and generate cash from the second quarter of 2009. Our streamlined operations, lower operating costs, and commitment to creating compelling customer experience, together with a highly profitable build-once-sell-often model, provides a solid springboard for long-term growth and shareholder value."
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