Swedish gambling operator Cherry AB reported its financial results for the second quarter and fist half of the year. Quarterly revenue grew 80% to SEK191.7 million. Revenue for the six months ended June 30, 2016 totaled SEK369 million, up 83% year-on-year.
During the second quarter of the year, the gambling operator registered continued growth in proceeds from online operations. Online revenue accounted for 81% of the group’s revenue generated during the period.
Cherry said that profitability also improved during the quarter in review. EBITDA increased from a negative of SEK0.4 million in 2015 to SEK14.8 million during the three months ended June 30, 2016. EBIT totaled SEK6 million, up from a negative of SEK5.2 million generated in the second quarter of 2015. Profit after tax amounted to SEK8.4 million, compared to a negative of SEK6.8 million posted for the same three-month period of the previous year.
During the reported quarter, Cherry saw online gaming revenue grow 113%. EBITDA from the division totaled SEK8.6 million, up from a negative of SEK2.3 million. Revenue from Yggdrasil Gaming, the gambling operator’s game development studio, increased 810% year-on-year. EBITDA for the period increased to SEK9.8 million.
Restaurant Casino, the company’s chain of gambling venues across Sweden, reported a slight drop in revenue for the period in review. It amounted to SEK35.9 million. EBITDA also dropped from SEK5.3 million in 2015 to SEK3.1 million.
As mentioned above, revenue for this year’s first half totaled SEK369 million. Online turnover represented 80% of the figure reported. EBITDA amounted to SEK40.5 million, up from a negative of SEK4.9 million reported for the first half of the previous year. EBIT also improved considerably from a negative of SEK14.1 million to SEK23.5 million.
Revenue from online operations increased 115% year-on-year. EBITDA also rose to SEK25.1 million. Revenue from Yggdrasil Gaming increased 661% year-on-year and EBITDA was up to SEK17.7 million. Turnover from Restaurant Casino remained flat but EBITDA dropped slightly from SEK9.2 million reported for the first half of 2015 to SEK7.6 million generated during the same six-month period of 2016.
Commenting on the company’s latest financial results, CEO Fredrik Burvall said that Cherry kept on delivering in accordance with its strategy, which was comprised of strong organic growth and major acquisitions. The executive further noted that the operator will remain focused on growing faster than the market and that its growth strategy together with the differentiated business areas it operates in will help it achieve its goal.
