Cherry Casino Shows Sweet Results for First Half of 2015Published September 6, 2015 by Lee R
The pioneering Swedish casino is growing online as well as its Q2 highlights show.
Cherry has been making all the right moves, which are paying off in organizational growth and industry recognition.
Highlights of Cherry's Q2 Report include significant growth in online gaming, at 61%, as well as a whopping 119% growth for Cherry's progressive slot provider holding Yggdrasil. Group revenue increased 40% to MSEK 106.7, with online earnings comprising 63 percent of total revenue for the group.
Online gaming deposits jumped to 82 percent. Further, Cherry's subsidiary Restaurant Casino increased turnover by 13 percent with Earnings Before Interest, Tax, Depreciation and Amortization EBITDA increasing 32 percent to MSEK 5.3 (4.0).
The growth of Yggdrasil Gaming grew by 119 percent with an EBITDA of MSEK -1.2 (-0.6).
Another significant development in Q2 for Cherry was the acquisition of Game Lounge, the subsequent launch of a joint white label brand called SveaCasino.com, and the launch of a new sportsbook on Norgesspill.com.
In June, industry recognition came in the form of Yggdrasil Gaming's winning of the EGR B2B's “Software Rising Star” prize.
Figures for the six month period revealed an increase in group turnover of 35 percent compared to the previous year, reaching MSEK 202.0 (149.4). Online makes up 63 percent (54) of the group revenue.
EBITDA amounted to MSEK -4.9 (-8.4), with EBIT reaching MSEK -14.1 (-15.3).
Online Gaming saw growth of 55 percent along with an increase in deposits of 68 percent.
Restaurant Casino increased turnover by 10 percent with EBITDA up 29 percent to MSEK 9.2 (7.1).
Other leading subsidiary Yggdrasil Gaming grew 136 percent pushing EBITDA to MSEK -1.6 (-1.8).
A lowering of operational costs was attributed to the controlling interest Cherry acquired in affiliate company Game Lounge Ltd in January, serving to increase Cherry's volumes at a significantly lower cost per customer.
The key new development since is Cherry's acquisition in July of 71 percent of the shares of Malta's Almor, a leading online casino for the German speaking markets.
Cherry attributes the results to a focus on core business and support of strategic acquisitions.