Nordic gaming operator Cherry AB has reported strong H1 financial results thanks to 55% revenue growth in the company’s online gaming business.
Cherry AB posted a 35% increase in revenue to SEK202 million for the six months ending June 30th, with online gaming accounting for 63% of overall revenue.
Online gaming grew by 55% in H1 while deposits increased by 68%. Revenues for B2B software division Yggdrasil were up 136% in the first half of the year.
Meanwhile, Cherry AB revenue increased 40% to SEK106.7 million during the three months ended June 30, with online gaming again accounting for 63% of group revenue, up from 54% for the same period in 2014.
Online gaming deposits increased by 82%, boosted by the April launch of SveaCasino.com, a joint venture white-label brand with Game Lounge, which Cherry acquired in February.
Cherry CEO Fredrik Burvall attributed the strong growth his company had during the second quarter of the year to the growth in its online business as well as to the improvements implemented in its Restaurant Casino division.
Cherry has added some strategic acquisitions to its portfolio including its 71% stake of Almor Holdings, an online casino with a leading position in the German-speaking markets. The acquisition reported EBITDA of approximately €1m in H1.
Cherry-owned Game Lounge has also acquired a leading Finnish affiliate’s domains and affiliate agreements. This is expected to increase EBITDA by more than €600,000 annually and bring in more than 10,000 new depositing customers to Cherry and other operators during a three-year period, rapidly increasing volumes of existing brands.
Yggdrasil, which has increased its revenues by 119%, has also signed two new contracts, including BetClic Everest Group.
“Cherry’s online business continues to grow and now represents 63% of group sales and is expected to grow faster than the market going forward,” said Burvall, adding that the group’s i-gaming business is “well positioned, with a well-functioning and flexible platform, where new products can easily be integrated and new skins added.”