SBC News Voice of the Sports Betting Industry
Reporting on its opening Q1 2015 quarter (period ending 31 March) European igaming operator Cherry AB has recorded its ninth consecutive earnings quarter loss, despite seeing improved gaming revenues of SEK 95 million (£7.3 million) 31% on Q1 2014 SEK 73 million.
Despite delivering improved revenues the Malta based operator reported EBITDA earnings of SEK -4.5 million (£350,000) for the period. Cherry AB would further report an increased earnings loss before tax of SEK 8.9 million (£700,000).
During the period Cherry AB management stated that that the company had increased spend on marketing of CherryCasino.com and SpilleAutomatter.com to SEK 26 million (£2.2 million). The operator had additionally incurred increased bonus costs caused by an increase in new player acquisition, which would impact company EBIT
Cherry AB, continued its expansion of igaming services during the period with the company acquiring igaming affiliate and acquisition services operator GameLounge. Cherry AB management further announced that the operator was on target to launch its sports betting offering with SBTech in Q2 2015.
Cherry AB CEO Fredirik Burvall commented on Q1 2015 performance
The first quarter continues to show great growth and group turnover increased by 31 percent. Cherry’s online business continues to grow and now accounts for 63 percent of total turnover. We also saw steps Cherry has taken, such as focusing on core business and supporting strategic acquisitions, begin to show results.
Within the online gaming industry, there is a certain degree of consolidation. Cherry is well positioned with a properly functioning platform, where new products can easily be integrated and new skins added. This means that Cherry has the ability to become a significant player within the trend of consolidation. Cherry’s goal is to grow faster than the market both through acquisitions and organically, focusing on quickly reaching profitability
Cherry AB Q1 2015 Performance Overview
