Swedish gambling operator Cherry AB today reported results for the three and nine months ended September 30, 2016. Revenue for this year’s third quarter amounted to SEK214 million, up 39% from 2015. The performance of the company’s online division was highlighted in its quarterly report, with revenue from Internet gambling growing 39% year-on-year.
EBITDA totaled SEK30.9 million for the period in review, up 78% from the same quarter of the previous year. EBIT stood at SEK21.5 million, up from SEK11 million reported for the third quarter of 2015. Both EBITDA and EBIT improved during the three months in review despite costs related to the acquisition of a 49% stake in ComeOn Malta Ltd. Cherry purchased interest in its fellow gambling company in July for a total consideration of €80 million.
Revenue from the Swedish operator’s newly added Game Lounge brand grew 167% and EBITDA was up 104% to SEK6 million. Generally speaking, Game Lounge is Cherry’s Malta-based subsidiary charged with online marketing within the gambling industry.
Yggdrasil Gaming, Cherry’s game development studio, reported a 299% jump in quarterly revenue and EBITDA of SEK9.2 million, up 385% from the same period a year ago.
The Restaurant Casino brand generated revenue of SEK39.5 million during the reported quarter, down from the amount of SEK42.5 million generated in 2015. EBITDA totaled SEK4.2 million, reflecting a decrease from SEK5.3 million for the third quarter of the previous year.
Group revenue for the nine months ended September 30, 2016 increased 64% to reach SEK583 million. Overall EBITDA stood at SEK71.4 million and was up 472% year-on-year. EBIT totaled SEK45 million, up from a negative of SEK3.1 million.
Online gambling revenue increased 78% from the same period of the previous year and EBITDA from those particular operations amounted to SEK35.5 million. Game Lounge saw revenue grow 173%. The brand reported EBITDA of SEK13.6 million for the nine months in review.
Yggdrasil Gaming reported a 465% rise in revenue. EBITDA was up from SEK0.3 million in the first nine months of 2015 to SEK26.9 million in the same period of 2016.
Restaurant Casino generated revenue of SEK114.1 million, down slightly from SEK117.2 million and EBITDA of SEK11.8 million, down from SEK14.5 million.
Commenting on Cherry’s latest results, CEO Fredrik Burvall said that the company has continued growing faster than the market. The official attributed the constantly improving performance to Cherry’s strategy to develop its business areas and to expand its portfolio with strategic acquisitions.
Mr. Burvall further dwelt that they will remain focused on pursuing a faster-than-the-market growth both organically and through important acquisitions.
