Cherry AB made a statement today and revealed a 44% increase in its annual online revenues. The announcement comes at a moment when the Sweden-based company is still focused on making its business profitable again.
The revenues increase was not the only good news for Cherry. The operator also shared that the customer deposits rose by one half over the year from SEK260.1 million and reached SEK390.6 million. The number of active players slightly fell from 23,347 to almost 22,200.
According to the company’s announcement, Cherry’s revenues for the fiscal year that ended on December 31st amounted to SEK183.1 million (£14.3 million). The excellent result is considered to be due to the stable performance of the company over the fourth financial quarter.
The reported revenues increase of Cherry over the fourth three months of the year amounted to 50% and the sales rose to a total of SEK56.8 million (£4.4 million).
The revenues increase over the year was beneficial for the Swedish company, because it helped reduce the losses. Still, Cherry announced negative annual earnings before interest, taxes, depreciation and amortization (EBITDA) estimated to SEK18.3 million. This is considered a 35% reduction of the full-year loss amounting to SEK28.1 million that was reported for the prior year.
In addition, a performance update was offered by Cherry on Yggdrasil Gaming, which is currently a supplier of the company’s affiliate B2B games. The supplier was reported by the operator to have signed a total of 18 new customer deals over 2014. Six of these agreements went live over the fourth fiscal quarter.
A 51% stake in Nordic-facing subsidiary business Game Lounge was purchased by Cherry in January 2015. The company hopes that the deal will be beneficial and will provide it with the opportunity to boost its actives with about 40,000 in a three-year period.
One of the Cherry’s Chief Executive Officers – Mr. Fredrik Burvall expressed his opinion and said he was sure that the deal would buoy the operator and push it back to profitability. As reported by reputable local media, Mr. Burvall said that the company believed the deal was to “increase Cherry’s revenues and EBIT” over years yet to come and helped it “generate many new depositing customers, which will mean that we will reach profitability in this business area more quickly.”
Mr. Fredrik Burvall took the position of Chief Executive Officer in December 2014. The company’s management went through a massive reorganization and Mr. Emil Sunvisson left the CEO role and stayed only as an advisor.
