2005 represented a milestone year for IQ-Ludorum with the advent of a significant change in the focus of the business beginning in the fourth quarter with the acquisition of payment processing technology and the repositioning of the company\’s role in the supply chain for online gaming operators.
Historically IQ-Ludorum missed out on a significant income stream that could have been generated by payment technology because it offered only “backbone” eGaming software used by operators to run their gaming websites and back offices. IQ-L management evaluated that the company would have financially benefited by offering new technology with pricing linked to growing payment volumes, rather than on mere licensing fees.
As a result, on 1 October 2005, IQ-Ludorum formally entered the payment processing business. IQ-L is now offering payments processing services through its proprietary prepaid debit card technology and has recently undertaken to make a significant strategic investment in Global Bank of Commerce, a full service bank licensed and regulated in Antigua that has been in operation for 23 years.
For the year ended 31 December 2005, IQ-L\’s turnover amounted to $2,415,000 versus $3,071,000 for the year ended 31 December 2004 (a decrease of 21 %). Expenses of $3,342,000 ($3,987,000 in 2004, a decrease of 16 %) resulted in a loss of $824,000 ($682,000 in 2004). The company estimates its licensees processed approximately $5 billion in sports wagers during 2005.
“2005 was a year of significant change for the IQ-Ludorum business. The Board made the strategic decision to develop a leading presence in what the Board believes is the under-serviced payments processing sector, as an extension of our existing gaming software products. The progress we have made in 2006 shows how quickly we are delivering on this strategy. We look forward to the rest of the year with confidence, both in our strategy and our payment products,” commented Chief Executive Mike Muscato.
IQ-Ludorum used first 6 monthsof 2006 to reposition itself at the forefront of the payment processing industry and to complete the core acquisitions of First Pay and PayTru as well as to fully engineer and test their systems. The products are now fully operational and during the second two quarters of 2006, IQ-L expects to see the commencement of real operating revenues from its new business.
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