Cherry AB stops investment in Swedish sports lotto Klubblo

KlubbloCherry has decided to phase out its involvement in the Swedish sports lottery Klubblo, as the conditions for conducting the business have changed.

The Swedish gaming regulator, Lotteriinspektionen, has changed the application of the regulatory framework, which has made it impossible for Klubblo to cooperate with sports associations whose federations are not members of the sports alliance Idrottsalliansen. Some major federations, including the Football Federation and Ice Hockey Federation, are prevented from joining the Sports Alliance due to exclusivity agreements with Svenska Spel.

Fredrik Burvall, CEO, Cherry, commented on the decision: “The goal was that Klubblo, with its focus on the grass root sports, would take a strong position as a partner to Swedish sports within the area of gaming and lotteries. Under the prevailing conditions, Klubblo does not fit into Cherry’s strategy.”

Liquidity is affected negatively by approximately SEK -1.5 million during the 4th quarter and the remainder of 2015. Impairment of assets and shares as well as results related to Svenska Klubbspel AB will be charged to financial income from associated companies with SEK -7.7 million and will be reported in the 4th quarter of 2014.

Cherry’s long-term strategy is to continue to grow within online gaming, both organically and through acquisitions, with the goal to quickly reach profitability.

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