Cherry Ab Reports Muted Half Year Performance

By Brian Cullingworth, Last updated Aug 29, 2014

Online gambling group achieves record turnover numbers, but EBITDA declines

Stockholm-based online gambling group Cherry AB has reported its half year results to , with record turnover numbers, but declines in EBITDA.
Highlights of the group's Q2-2014 include:
* Group turnover up by 24 percent to SEK 76.4 million (61.6).
* EBITDA down SEK 4.1 million (-9.2).
* Profit after tax down SEK 7.1 million (-9.3)
* During the quarter SEK 51.2 million (143.4) was transferred to shareholders, corresponding to SEK 4.00 per share (11.20).
* Online gaming up 38 percent with deposits increased by 38 percent.
* Restaurant Casino increased turnover by 9 percent and EBIT rose by 21 percent. Now commands 67 percent of that market segment.
* JPC Casino was acquired.
* Yggdrasil Gaming signed three new contracts during Q2 and went live with one new operator.
* Group cash amounted to SEK 54.8 million (106.7) at the end of the period.
Cherry's H1-2014 performance included the following:
* Strong growth within Online Gaming and Yggdrasil
* Group turnover up by 23 percent to SEK 149.4 million (121.4).
* EBITDA down at SEK -8.4 million (-8.9).
* Profit after tax SEK -15.2 million (-11.3)
* Online gaming grew by 40 percent and deposits increased by 43 percent.
* Yggdrasil Gaming signed seven new contracts and went live with three new operators.
Management said the first six months of 2014 had been generally positive, with new sales records set.
"Online Gaming continues to grow faster than the market and Yggdrasil has signed a number of new contracts," the report notes.
EuroLotto.com was migrated to Cherry's platform and the offer has been supplemented by a large number of new games, which resulted in an increased customer intake, contributing to substantial growth of 38 percent within the Online Gaming business area.
However, management warned that continued strong marketing investment and bonus expenses related to customer acquisition have "burdened" the result, although with increasing volumes the margins will continue to improve.
Yggdrasil products are now available on 15 different online casinos with six different operators, and growth is expected to continue.
Events after the end of the reporting period include:
* The Swedish Sports Alliance has received a license for the new lottery "Klubblo", which will be released in Q3.
* Yggdrasil Gaming went live with major operators Unibet and MrGreen.

Online Casino News Courtesy of Infopowa

Brian Cullingworth

Infopowa news was a staple of Casinomeister’s news from 2000 until 2019. Brian Cullingworth was the main writer, contributor, and was one of the most knowledgeable persons I have ever known involved in the online casino industry.

We first met in January 2001 at the ICE in London where I observed him going booth to booth interviewing online casino, software, and licensing jurisdiction representatives. Brian was also heavily involved with our forum as “Jetset“, he was involved as an informal consultant to eCOGRA, the OPA, and was a player advocate who assisted countless aggrieved players with his connections to industry folks. He also published “Casino Cautions” via Infopowa news for quite a number of years. These can be found in our news archives.

His passing in February 2019 was a dark day for us. He will be forever missed.


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