Swedish gambling giant Cherry has announced its first half 2012 financial results, highlighting a strong fiscal half with high after tax profits.
Key financial indicators for the period ending June 30th are:
Group turnover up 13% to SEK 234.6 million and EBIT increased by 503% to SEK 18.1 million.
EBITDA rose 174% to SEK 24.1 million (H1-2011 : 8.8 million).
After tax profit at SEK 14.6 million (H1-2011: 5.6 million)
Online player numbers rose to 271,919 by mid-year, with 34,626 of them actives (H1-2011: 146,863).
Online gaming revenues in H1-2012 were up 24% to SEK 128.5 million (H1-2011: SEK 103.8 million) and EBIT rose 101% to SEK 17.3 million (H1-2011: SEK 8.6 million).
The group's consolidated cash position stood at SEK 26.2 million (H1-2011: SEK15.1 million) at the end of the period.
Second quarter highlights were:
Group turnover increased by 5% to SEK 115.5 million (Q2-2011: 109.7 million).
EBITDA up 455% to SEK 12.2 million (Q2-2011 : 2.2 million).
EBIT increased significantly to SEK 9.1 million (Q2-2011 : loss of SEK 700,000).
Online Gaming increased EBIT by 156% to SEK 8.7 million (Q2-2011 : SEK 3.4 million).
During the second quarter of Q2-2012, online gaming revenues rose 11% to SEK 60.9 million (Q2-2011: SEK 55 million).
Restaurant Casino increased EBIT by 63% and to SEK 2.6 million (Q2-2011: SEK 1.6 million).
Maritime Gaming increased EBIT to SEK 300,000 (Q2-2011 : loss of SEK 100,000).
After tax profit of SEK 7.6 million (Q2-2011 SEK 1.8 million)
Emil Sunvisson, Cherry's CEO spoke about the results, saying:
"It is with great satisfaction that Cherry presents the results from the second quarter. All business areas report higher operating income compared to the same period last year and the strong growth, in Online Gaming continues."
"Cherry's focus on online slot machines has generated continued growth and profit. Operations are carried out in cooperation with strong and competent partners. The business focuses primarily on the Scandinavian market."
"Preparations are underway to address new European markets with EuroSlots.com, which is a prerequisite for continued profitable growth."
"Meanwhile, EuroLotto focused on activating the large customer base that was built up during last year. This has also resulted in decreased marketing costs in the first half of the year."
"During the first half of 2012, Restaurant Casino has delivered a very solid result and at the same time turnover rose by 7%. In July, the acquisition of Snättringe and City Casino’s businesses was completed. The acquisition will have a positive impact on sales and earnings from the third quarter onward."
"Maritime Gaming turned profitable in the second quarter, despite the challenging conditions in southern parts of Europe. Operations in the Baltic are developing well, while the activities around the British Islands and Mediterranean remains a challenge. It is pleasing that Cherry, in August, signed a new contract with Corsica Ferries, which will improve profitability in the Mediterranean."