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Cherry published its H1-2013 results

Online punter deposits up 32 percent, but profits sink as shareholders benefit.
The Swedish gambling group Cherry published its H1-2013 results Wednesday, posting improved revenue and profit numbers.
Highlights of the period to 30 June 2013 included:
* Second quarter cash at SEK 106.7 million, with online gambling deposits up 64 percent.
* Group turnover increased 15 percent to SEK 61.6 million (53.4).
* EBIT down at SEK -10.9 million (1.6).
* The after tax profit down at SEK -9.3 million (0.5).
* Group cash at SEK 106.7 million (26.2) at the end of the period.
* During the quarter SEK 143.4 million was transferred to the shareholders – the equivalent to SEK 11.20 (0.75) per share.
* Online gambling grew 29 percent during the second quarter and deposits rose 64 percent.
* Customer acquisition increased 65 percent to 37 727 (22 832).
* Restaurant Casino increased turnover by 5 percent and market share increased to 61 percent (55).
* Online games developer Yggdrasil Gaming obtained a class 4 license on Malta.
* Cherry launched a new online casino in June,
During H1-2013 Management reported that:
* The Automaten sites were sold for SEK 286 million, and online gambling revenues soared 32 percent. SEK 60 million of the Automaten sales price will be paid to Cherry in February 2014 following a deferred payment agreement.
* Group turnover increased 15 percent to SEK 121.4 million (105.7).
* EBIT declined to SEK -12.2 million (3.0).
* After tax profit dipped steeply SEK -11.3 million.
Entering H2-2013, the company reported that Cherry Malta's gaming site has launched a portfolio of 10 new games from Yggdrasil Gaming, including both Video Scratch and 3D Video Keno, under the new gaming category 'Numbers' tab.
Emil Sunvisson, CEO of Cherry Group, said that the second quarter of the year had seen a very strong intake of players and increased deposits.
"With the launch of we aim to re-establish ourselves as a major player in the Scandinavian market," he said, but warned that the online gambling result was impacted by high bonus and marketing costs.
Sunvisson said that the company's online gambling division was "....still in the construction phase and we prioritize development of our products and the growth of the customer base, before profitability."
"We have used all of our previous experience in order to create an optimal online gaming experience," Sunvisson said. "With the help of a strong brand, working with local sports clubs and offering a unique customer satisfaction guarantee, the product has been very well received. With the re-launch of we can exploit Cherry's strong brand in the Swedish market."
Cherry's Yggdrasil project has gone live with a portfolio of 10 games on and continues to develop positively, Sunvission said.

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