Nordic online gambling operator Cherry AB nearly doubled its online gambling revenue in 2015 following a hectic year of acquisitions.
For the three months ending Dec. 31, Cherry reported total revenue up 72% to SEK 172.5m (US $20.4m), while earnings hit SEK 23.4m, resulting in an after-tax profit of SEK 12.9m versus a net loss of SEK 15.3m one year ago.
The Q4 results were spurred by Cherry’s online operations, which rose 109%, while online earnings hit SEK 15.4m. Online accounted for 73% of group revenue, up from 58% a year ago. By contrast, Cherry’s restaurant casino business saw turnover rise a more modest 5% while earnings slipped 2% to SEK 4.9m.
Yggdrasil Gaming, the B2B online technology provider in which Cherry holds a 90% stake, reported revenue up nearly 700% while earnings improved to SEK 4.9m versus a SEK 1.4m loss one year ago. Yggdrasil recently received a UK operating license and expects to launch with its first UK-facing customers – including online market leader Bet365 – this quarter.
Results for the year as a whole were similarly skewed, with online revenue rising 91% and accounting for 69% of the total pie, up from 55% in 2014. Full year earnings rose to SEK 35.9m from a SEK 17.9m loss in 2014.
Last year was transformative for Cherry, which acquired the Game Lounge affiliate business, Almor’s German-facing brands, a major Finnish affiliate’s domains as well as Moorgate Media and NorgesSpill.com.
Cherry CEO Fredrik Burvall praised his company’s online performance, which included a 219% rise in customers in 2015. Burvall expects further gains when Cherry’s application for a UK gambling license is approved in the (hopefully) not too distant future.
Burvall said Cherry is the only private operator that has been invited to participate in the Swedish government’s consultations on the country’s gambling law revamp. Burvall said he expects the finalized legislation to be in place by July 2018. Cherry has also applied to list its shares on the Nasdaq Stockholm index, a process the company believes will be completed later this year.
