Swedish gambling operator Cherry AB released today its financial report for the first quarter of the year. Group revenue amounted to SEK177.3 million, up 86% from the SEK95.3 million posted for the same period of 2015.
Cherry said that its online business continued growing and during the three months ended March 31, 2016 revenue from Internet operations accounted for 78% of the group’s overall revenue.
Profitability also improved considerably and EBITDA amounted to SEK25.6 million by the end of the quarter. EBIT totaled SEK17.4 million. This time last year, Cherry reported both negative EBITDA and EBIT.
Revenue from the gambling operator’s online operations increased the impressive 118% year-on-year. EBITDA from online gambling totaled SEK16.5 million as compared to negative EBITDA of SEK5.7 million reported for the same period a year ago.
Revenue generated by Yggdrasil Gaming, Cherry’s own developing studio, was up 519% in the three months ended March 31, 2016. The studio generated EBITDA of SEK7.9 million, up from a negative of SEK0.4 million posted for the first quarter of the previous year. Late in 2015, Yggdrasil Gaming was granted the necessary licenses by the UK Gambling Commission in order to be able to offer its products in the local market. Games are now live in the UK and the gaming studio has already signed agreements with six UK-facing operators.
Restaurant Casino, known to be Cherry’s Swedish chain of restaurants offering a number of traditional casino games, saw a 10% increase in turnover. EBITDA also increased from SEK3.9 million for the first quarter of 2015 to SEK4.5 million generated during the same period of the current calendar year.
Fredrik Burvall, Cherry AB CEO, commented on his company’s performance during the three months ended March 31, 2016, saying that it has continued implementing its strategy which includes organic growth and the acquisition of key businesses. Cherry saw revenue and profits increase during this year’s first quarter, the official added.
As for Cherry’s plans for the rest of the year, it is to continue delivering according to its strategy and to follow its ambition to grow faster than the gambling market. Mr. Burvall pointed out that the gambling operator has the means needed to achieve this.
