Internet gaming firm Cherry has announced their first half 2016 financial results, noting revenue surges of more than 80%.
Key corporate highlights for the first half ending June 30th, 2016 were:
- Revenues up 83% at SEK 369 million, with a positive EBITDA of SEK 40.5 million;
- Group turnover increased by 83% compared to the previous year, with online contributing 80 percent;
- Profitability improved considerably and EBITDA amounted to SEK 40.5 million;
- Profit after tax of SEK 25.9 million was recorded, a major improvement on the comparative figure in 2015, when a loss of SEK 18.6 million was reported;
- Over the half year online gaming operations grew by 115% and EBITDA amounted to SEK 25.1 million (not including ComeOn);
- Yggdrasil Gaming grew by 661% and EBITDA rose to SEK 17.7 million (H1-2015: -SEK 1.6 million).
Second quarter highlights for the group were:
- Revenues grew up 80% at SEK 191.7 million;
- Online made up 81% (63% in Q2-2015) of the group revenues;
- Profitability improved and EBITDA amounted to SEK 14.8 million (Q2-2015: loss of SEK 400,000) but performance was burdened with acquisition costs for ComeOn and Nasdaq listing costs of SEK 4 million;
- The Q2 result after tax was SEK 8.4 million equivalent to SEK 0.21 per share after dilution and minority interests;
- Online gaming grew by 113% and EBITDA amounted to SEK 8.6 million - not including ComeOn.
- Yggdrasil Gaming grew by 810% and EBITDA amounted to SEK 9.8 million; the company signed agreements with five new operators, including Bwin.party and Interwetten.
- Cherry signed an agreement to buy 49% of the shares in ComeOn Malta Ltd with an option to acquire the remaining 51% and expects the acquisition to strengthen Cherry's position substantially in the Scandinavian market. The acquisition is expected to have a significantly positive effect on Cherry's earnings per share from 20 July 2016.
- Group consolidated cash amounted to SEK 67.8 million at the end of the second quarter 2016 (H1-2015 SEK 24 million).
Commenting on his company's performance, Cherry CEO Fredrik Burvall said, "The activity on our gaming sites grew strongly and the number of active customers increased by as much as 202 percent. Compared to the second quarter of 2015, deposits increased by 110 percent.
"During the period, we continued to upgrade our gaming sites with our latest technology and new product verticals. Among many things, Lotto was introduced on CherryCasino and sports betting was implemented on Sunmaker.
"Cherry iGaming will, in addition to the licences it already has, continue to seek local licences where we expect strong growth, and we have initiated an application process to obtain an operator's license in the UK, which is expected to be in place during the second half of 2016.
"Our ambition is to continue to grow faster than the market and we are well equipped to do this both through organic growth and acquisitions," Burvall concluded. "Our strategy, in combination with differentiated business areas, will create excellent opportunities for continued high growth, high profitability and strong value growth."