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Cherry AB has published its Q1-2015 results

Wednesday May 13,2015 : ONLINE GAMBLING THE MAINSTAY IN CHERRY AB ENTERPRISE
 
Online vertical delivers 63 percent of group revenues.
 
The Stockholm-listed land and online gambling group Cherry AB has published its Q1-2015 results, flagging the following highlights:
 
* 49 percent growth for online gaming and 156 percent growth for software subsidiary Yggdrasil Gaming;
 
* Group revenue up by 31 percent to SEK 95.3 million (previously 73.0);
 
* Online gaming makes up 63 percent (55) of group revenue;
 
* EBITDA amounted to SEK -4.5 million (-4.3). EBIT amounted to SEK -8.9 million (-7.6);
 
* The company posted an after tax loss of SEK -11.8 million (-8.1), equivalent to SEK -0.88 (-0.59) per share after dilution;
 
* In January, Cherry acquired 51 percent of the shares in the affiliate management company Game Lounge Ltd, enabling the group to increase the number of customers at a significantly lower cost per customer;
 
* Online gaming grew by 49 percent and deposits increased by 54 percent;
 
* Restaurant Casino operations increased turnover by 6 percent and EBITDA amounted to SEK 3.9 millions (3.1);
 
* Yggdrasil Gaming grew by 156 percent but EBITDA amounted to SEK -0.4 millions (-1.2); the company also launched its first progressive slot - Joker Millions;
 
* Joint white label SveaCasino.com was launched in early April;
 
Fredrik Burvall, CEO reported to shareholders that the group focus on core business and strategic acquisitions is beginning to show results, overall growth is encouraging, and the company is well-positioned to take advantage of the industry trend toward consolidation.
 
"We’ve seen a strong growth in mobile gaming and will continue to improve our mobile offerings," Burvall noted, adding that during the first quarter the company’s Yggdrasil subsidiary has increased its revenues by 156 percent and has signed three new contracts with customers such as the AIM-listed GVC.
 
"Yggdrasil has also decided to release all of its games on the new platform; the HTML5-based iSense 2.0, making it possible to release games simultaneously on computer, tablet and mobile. This means that operators have greater ability to reach their players with marketing campaigns," Burvall revealed.
 
The executive again raised the issue of a need for a fresh approach in the Swedish market, commenting:
 
"Sweden has rightfully been taken to the European Court after having, for too long, delayed a re-regulation. We are now heading towards the fourth gaming investigation since 2000. We look forward to a gaming market that is open for everyone, with transparent and responsible operators. We want to eliminate the anachronistic and broken down gaming monopoly. We want to create more jobs in Sweden and compete in fair conditions."



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