Sweden-headquartered gambling operator Cherry AB (plc) released information about its financial performance for the fourth quarter and the full-year ended December 31, 2015. Revenue for the reviewed three-month period amounted to SEK172.5 million, up 72% year-on-year.
Cherry reported a strong growth in its online division, saying that revenue from Internet gambling accounted for 74% of the group’s overall turnover. Improved profitability was also among the highlights in the company’s quarterly financial report. Cherry posted EBITDA of SEK23.4 million for the three months ended December 31, 2015, compared to a negative of SEK6.5 million for the same period of 2014. EBIT totaled SEK16.4 million.
Revenue from online gaming increased 109% during the fourth quarter of 2015 and EBITDA from those particular operations totaled SEK15.4 million. Restaurant Casino, known to be Cherry’s land-based division, saw its quarterly revenue rise 5%. EBITDA amounted to SEK4.9 million. Restaurant Casino currently offers blackjack and roulette at more than 270 bars, nightclubs, and restaurants across Sweden.
Revenue from gaming developer Yggdrasil Gaming increased the impressive 696% during the three-months ended December 31, 2015. EBITDA from the studio totaled SEK4.9 million. During the fourth quarter, Yggdrasil was granted a UK operator license and customers are expected to go live with its products before the end of March.
Last October, Cherry purchased an additional 4% stake in Malta-headquartered Almor Holding Limited. Thus, it now owns an overall 75% stake in the online casino, which is targeting German-speaking gambling customers.
During the period in review, the Swedish company also acquired 100% in Malta-based Moorgate Media Ltd. as well as 100% in online casino NorgesSpill for the total amount of €4.75 million. Cherry said that those strategic acquisitions will result in EBITDA increasing by €1.5 million per year.
The gambling operator also reported strong revenue and profit growth for the calendar year ended December 31, 2015. Revenue was up 56% year-on-year to reach SEK528.7 million. Online gaming accounted for 69% of the overall figure posted.
EBITDA totaled SEK35.9 million compared to a negative of SEK17.9 million posted for 2014. Cherry’s full-year EBIT amounted to SEK13.3 million in 2015.
Turnover from Internet gambling increased 91% last year and EBITDA totaled SEK21.8 million. Restaurant Casino reported revenue rise of 9%. EBITDA from its operations increased from a negative of SEK4.6 million to SEK5.2 million. Proceeds from Yggdrasil Gaming grew 357%. An increase was also registered in annual EBITDA. It amounted to SEK5.2 million compared to a negative of SEK4.6 million in 2014.
Commenting on the company’s performance, CEO Fredrik Burvall said that Cherry is very well-positioned to continue growing faster than the gambling market and to focus its attention on the rapid increase of profitability. The executive further pointed out that they will keep on spreading “the joy of playing, both online and at the pub” in 2016.
