While the gaming business has remained at 2005 levels, with revenues for the six months amounting at $1.22m (2005 : $1.24m), the online gaming software developer has completed the acquisitions of First Pay, an online payments company specialized in integrated debit card solutions, and of a 33% minority interest in PayTru Card Services, a company that operates a proprietary debit card-based electronic transaction processing system.
IQ-L has also completed a $15m strategic investment in the Global Bank of Commerce, a full service bank incorporated in Antigua, and in June 2006 has entered into a joint venture with Debit Loans LLC to further commercialize its growing prepaid debit card portfolio.
Due to the increased level of uncertainty in the gaming sector and market factors outside the company\’s control, including a significant question mark over the recoverability of amounts due from BetOnSports, IQ-L envisages making a small loss in the current year (excluding a number of exceptional one off costs).
However, IQ-L has now the opportunity to reposition itself at the forefront of the real time electronic payment processing industry. The new Board views the company\’s prospects for the future with optimism and believes that the combination of strong gaming credentials (IQ-L has enjoyed deep working relationships with gaming operators since it was founded in 1998), deep institutional-scale transaction banking processing experience and prepaid debit card systems, position IQ-L strongly in a competitive landscape largely populated by look-a-like e-wallet and direct debit products.
Chief Executive Mike Muscato commented: “While the last few months have seen regulatory issues within the sector emerge in the United States, the Board feels confident that its continued strategy of diversification across payment processing and software capabilities is the right one. Overall the software legacy business is expected to decline in significance as the payments business continues to grow. With recent strategic acquisitions and investments in place and the continued strong take up of the payments business, the Board retains its positive outlook.”
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