Internet betting firm Cherry AB has released their second quarter and first half 2015 financial results, revealing strong growth but a continued drop in profits and revenue.
Key financial indicators for the second quarter ending June 30th, 2015 were:
Second quarter growth of 61 percent in online gaming operations;
119 percent growth for Yggdrasil - but EBITDA lower at SEK -1.2 million (SEK -600,000);
Group revenue increased by 40 percent to SEK 106.7 million (76.4), with Online delivering 63 percent (54) of group revenue;
EBITDA improved to SEK - 400,000 (-4.1m). EBIT at SEK -5.2 million (-7.7);
Profit after tax of SEK -6.8 million (-7.1m);
Online gaming deposits up by 82 percent;
Restaurant Casino increased turnover by 13 percent and EBITDA increased by 32 percent to SEK 5.3 million (4.0);
In April, only two months after Cherry acquired Game Lounge, the joint white label brand SveaCasino.com was launched;
Second quarter launch of a sportsbook on Norgesspill.com
Results for the first half were:
Group turnover increased by 35 percent year-on-year to SEK 202 million (149.4), with online operations contributing 63 percent (54) of the group revenue;
EBITDA at SEK -4.9 million (-8.4). EBIT amounted to SEK -14.1 million (-15.3);
Profit after tax amounted to SEK -18.6 million (-15.2);
Online gaming operations grew by 55 percent and deposits increased by 68 percent;
Restaurant Casino increased turnover by 10 percent and EBITDA increased by 29 percent to SEK 9.2 million (7.1);
Yggdrasil Gaming grew by 136 percent and EBITDA amounted to SEK -1.6 million (-1.8);
In January 2015, a controlling interest in the affiliate company Game Lounge Ltd was acquired by Cherry. This is expected to enable Cherry to rapidly increase its volumes at a significantly lower cost per customer than before.
Commenting on the results Cherry CEO Fredrik Burvall said, "A new order is required on the Swedish gaming market. Sweden has quite rightly been taken to the European Court, after having too long delayed a re-regulation. The latest development is a new Swedish gaming legislation that will be in place by July 1, 2018."
"Cherry welcomes a gaming market that is open for everyone with transparent and responsible stakeholders. We want to eliminate the anachronistic and failed gaming monopoly. We want to create more jobs and compete on fair conditions."
"Cherry's goal is to grow faster than the market both through acquisitions and organically, focusing on rapidly increasing profitability."