Swedish gambling operator Cherry AB posted an 80 percent increase in its second quarter revenue, thanks to its online offerings.
For the April-June 2016 period, Cherry’s revenue rose to SEK191.7 million (US$ 22.42 million), with online revenue accounting for 81 percent of the group’s revenue generated during the period.
The firm reported that it has bounced to profitability in the second quarter based on its earnings before interest, taxes, depreciation, and amortization (EBITDA). From a negative of SEK0.4 million (US$46,781) in April-June 2015 period, Cherry’s EBITDA rose to SEK14.8 million (US$1.73 million) during the three months ended June 30, 2016.
Cherry also enjoyed a 113 percent growth in its online gaming revenue during the second quarter of 2016. EBITDA from its online gaming arm was at SEK8.6 million (US$ 1.01 million), up from a negative of SEK2.3 million (US$268,991).
Yggdrasil Gaming, Cherry’s game development studio, chalked an 810 percent increase in its revenue for the second half of 2016. Its EBITDA for the period surged to SEK9.8 million (US$1.15 million). For the first half of 2016, Yggdrasil’s revenue increased by 661 percent to SEK34.1 million (US$ 3.99 million).
Restaurant Casino, the company’s chain of gambling venues across Sweden, reported a slight drop in revenue for the period in review. It amounted to SEK35.9 million. EBITDA also dropped from SEK5.3 million in 2015 to SEK3.1 million.
Revenue for the six months ended June 30, on the other hand, rose by 83 percent to SEK369 million (US$ 43.16 million). Online turnover represented 80% of the figure reported. EBITDA amounted to SEK40.5 million, up from a negative of SEK4.9 million reported for the first half of the previous year. EBIT also improved considerably from a negative of SEK14.1 million to SEK23.5 million.
Fredrik Burvall, chief executive officer of Cherry, expressed satisfaction with how the company is performing, especially since it has kept on delivering in accordance with its strategy, which was comprised of strong organic growth and major acquisitions.
He said that Cherry will remain focused on growing faster than the market and that its growth strategy together with the differentiated business areas it operates in will help it achieve its goal.