Wednesday August 29,2012 : CHERRY ONLINE GAMBLING DELIVERS THE GOODS
Swedish company's internet operations make a significant contribution to H1 revenues
The Swedish land and online gambling group Cherryforetagen, which recently changed its title to Cherry posted a strong set of H1-2012 results for the period January 1 – June 30 this week, reporting highlights that include:
* Group turnover up 13 percent to SEK 234.6 million and EBIT increased by 503 percent to SEK 18.1 million.
* EBITDA rose 174 percent 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 percent to SEK 128.5 million (H1-2011: SEK 103.8 million) and EBIT rose 101 percent 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.
The group reported that in its second quarter profits grew strongly in all business areas, but especially in online gambling. Q2-2012 results included:
* Group turnover increased by 5 percent to SEK 115.5 million (Q2-2011: 109.7 million).
* EBITDA up 455 percent 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 percent to SEK 8.7 million (Q2-2011 : SEK 3.4 million).
* During the second quarter of Q2-2012, online gaming revenues rose 11 percent to SEK 60.9 million (Q2-2011: SEK 55 million).
* Restaurant Casino increased EBIT by 63 percent 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)
Management reported that operational achievements included:
* Cherry has applied for a licence in Malta and is preparing for a launch of Euroslots.com in Q3 of 2012 .
* Cherryföretagen AB changed name to Cherry AB on 9 of May 2012.
Cherry CEO, Emil Sunvisson, reported:
"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 percent. 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."
Cherry operates Online Gaming through SverigeAutomaten.com, NorgesAutomaten.com, DanmarksAutomaten.com, PlayCherry.com, EuroLotto.com and affiliate operations from CherryAffiliates.com, all operated by subsidiaries in Malta.
The company's land and maritime gaming interests include:
* Restaurant Casino – traditional casino table games (blackjack, roulette) operated in approximately 220 Swedish restaurants, nightclubs and hotels. Cherry also offers Event Casino for companies and private individuals.
* Maritime Gaming – operates games (slot machines and table games) on 66 vessels, of which 9 in the Mediterranean Sea and the Black Sea, 41 vessels in the Baltic Sea and 16 in the English Channel / North Sea and Irish Sea.