Swedish gaming company Cherry AB (plc) reported its financial results for the third quarter of the year. Group revenue amounted to SEK154.1 million, up 71% year-on-year.
The gambling operator reported that revenue from its online business accounted for 72% of the overall group revenue posted for the period. Group EBITDA amounted to SEK17.4 million. As for EBIT, it totaled SEK11 million during the third quarter of 2015.
Cherry’s online business posted a 131% growth during the period in review. EBITDA from online operations amounted to SEK14.5 million. Revenue from Restaurant Casino operations was up 13% year-on-year and EBITDA amounted to SEK5.3 million, up 7% year-on-year. Yggdrasil Gaming posted the impressive 339% growth in revenue during the three months ended September 30. EBITDA amounted to SEK1.9 million. Cherry announced that Yggdrasil has applied for a UK operator license.
What is more, during the third quarter of the year, Cherry purchased a 71% stake in online casino operator Almor Holding Limited. The Malta-based company specializes in the provision of online gaming services to gambling customers from German-speaking markets.
Apart from the third quarter of the year, Cherry also announced its financial results for the nine months ended September 30. Group revenue amounted to SEK356.2 million during the reported period, up 49% as compared to the figures posted for the same nine months a year ago. Revenue from online operations accounted for 67% of overall proceeds.
Cherry said that profitability increased significantly over the period and resulted in EBITDA totaling SEK12.5 million. EBIT amounted to SEK-3.1 million.
Cherry’s online gaming business posted a 83% increase during the reported nine months and EBITDA amounted to SEK6.4 million. Revenue from Restaurant Casino was up 11% and EBITDA grew 20% year-on-year to reach SEK14.5 million. Yggdrasil Gaming posted a 215% growth in revenue during the nine-months ended September 30. EBITDA for the period amounted to SEK0.3 million.
Commenting on the company’s financial performance, Cherry CEO Fredrik Burvall said that they are particularly pleased with their strong growth in both revenue and profit during the third quarter of the year. Mr. Burvall also noted that they had managed to integrate all the operator’s strategic acquisitions and that all its businesses demonstrated strong growth over the reported three months. The executive paid special attention to Cherry’s online gaming operations, saying that they are to grow faster than the market.
