Cherry delivers impressive online gaming results

In a third quarter interim report, Stockholm-headquartered online gaming firm Cherry AB (Plc) reported a 131 percent rise in EBIT for its online gaming and 339 percent for its Yggdrasil Gaming sectors.

Key performance highlights for the three months ending September 30, 2015 include:

–    Group revenue increased 71 percent to SEK 154.1 million (Q3/2014: SEK 90.4 million). Online makes up 72 percent (Q3/2014: 53 percent) of the group revenue.

–    Improved profitability with an EBITDA result of SEK 17.4 million (Q3/2014: SEK (-3) million).

–    EBIT amounted to SEK 11.0 million (Q3/2014: SEK (-7) million).

–    Result after tax amounted to SEK 12.1 million (Q3/2014: SEK (-8.8) million), equivalent to SEK 0.65 (Q3/2014: SEK -0.69) per share.

–     Online Gaming grew by 131 percent and EBITDA amounted to SEK 14.5 million (Q3/2014: SEK (-4.7) million).

–    Restaurant Casino increased turnover by 13 percent and EBITDA increased by 7 percent to SEK 5.3 million (Q3/2014: SEK 5.0 million).

Yggdrasil Gaming grew 339 percent and EBITDA amounted to SEK 1.9 million (Q3/2014: SEK (-1.4) million).

September was the first month with a positive EBIT for Yggdrasil who has also initiated an application for an operator license from the UK Gambling Commission.

For the nine-month period ending September 30, 2015, key performance highlights include:

–    Group turnover up 49 percent amounting to SEK 356.2 million (9M/2014: SEK 239.8 million). Online makes up 67 percent (9M/2014: 54 percent) of group revenue.

–    EBITDA of SEK 12.5 million (9M/2014: SEK (-11.4) million). EBIT amounted to SEK -3.1 million (9M/2014: SEK (-22.3) million).

–    Result after tax amounted to SEK (-6.4) million (9M/2014: SEK (-24) million), equivalent to SEK -0.72 (9M/2014: SEK (-1.84) per share after dilution & minority int.

–    Online Gaming grew by 83 percent and EBITDA amounted to SEK 6.4 million (9M/2014: SEK (-14.0) million).

–    Restaurant Casino increased turnover by 11 percent and EBITDA increased by 20 percent to MSEK 14.5 (12.1).

–    Yggdrasil Gaming grew by 215 percent and EBITDA amounted to SEK 0.3 million (SEK (-3.2) million).

Cherry expects to rapidly increase its volumes, following the acquisition of affiliate company Game Lounge Ltd in January, at a significantly lower cost per customer than before.

“We are pleased to be able to show a strong growth and profit for the third quarter. Our strategic acquisitions have been successfully integrated within Cherry and all business areas are now showing a profit,” chief executive officer Fredrik Burvall commented.

“Cherry’s goal is to continue to grow faster than the market through acquisitions as well as organically and focusing on rapidly increasing the profitability. We now look forward to continue to spread the joy of playing, both online and at the pub.”

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