Nordic online betting operator Cherry AB saw its online revenues triple in 2016 following the acquisition of sports betting operator ComeOn Malta.
On Tuesday, Cherry reported that its Q4 revenue had spiked 201% to SEK 519m (US $57.9m), while earnings were up 353% to SEK 106m. Full year 2016 group revenue gained 109% to SEK 1.1b, while earnings rose 393% to SEK 177.7m.
The surge came largely as a result of the May 2016 acquisition of Malta-based ComeOn.com, a deal that transformed Cherry into the “third largest player in the Nordics.” ComeOn’s impact drove Cherry’s online revenue up 294% while active customer ranks rose 339%.
New CEO Anders Holmgren, who was officially appointed permanent CEO this week after taking over active CEO duties from the retiring Fredrik Burvall in January, said the combination of Cherry and ComeOn made the tandem “a serious player for the future.”
Revenue from Cherry’s share of B2B technology provider Ygdrassil Gaming gained 207% and earnings rose 171% to SEK 13.2m in Q4, making it the strongest quarter in Yggdrasil’s history. Yggdrasil plans to launch its first 11 games in the Italian market in Q2 2017, with other regulated market entries under consideration.
The Game Lounge affiliate business saw its Q4 earnings grow 37% to SEK 5.3m. GameLounge recently entered the Japanese market, giving it a presence in nine markets, a total the company plans to further boost in 2017.
Cherry’s restaurant casino business reported Q4 earnings flat at SEK 4.9m.
Cherry’s new B2B technology division XCaliber – which will offer Cherry’s gaming platform, payment and affiliate system to partners and other gaming operators – expects to sign its first partnerships with external customers this year.
Cherry is still working on its planned listing on the NASDAQ Stockholm index, which the company hopes to achieve by Q2 2017.