Swedish online gambling group Cherry AB has posted strong financial results for the six months to June 30 with accelerated growth in Q2.
Second quarter revenues for online gaming grew 61 per cent with turnover at Cherry’s game development business Yggdrasil up 119 per cent.
Group revenue increased by 40 per cent in the same period, to SEK 106.7m (€11.1m) with online gaming accounting for 63 per cent of group revenue, up from 54 per cent for the same period in 2014.
Online gaming deposits increased by 82 per cent, helped by the April launch of SveaCasino.com, a joint venture white-label brand with Game Lounge, which Cherry acquired in February.
The strong Q2 showing consolidates performance for the six-month period. Group turnover in H1 increased to SEK 202m (€21.1m), up 35 per cent year on year.
Online gaming grew by 55 per cent in H1 while deposits increased by 68 per cent. Revenues for Yggdrasil were up 136 per cent in the first half of the year.
Cherry Group CEO Fredrik Burvall said of the second-quarter results: “We have improved our earnings considerably, which is a result of the growth Cherry has had primarily within online gaming but also because of strong improvements within restaurant casino.
“Cherry’s online business continues to grow and now represents 63 per cent of group sales and is expected to grow faster than the market going forward,” adding that the group’s i-gaming business is “well positioned, with a well-functioning and flexible platform, where new products can easily be integrated and new skins added.”
Burvall continued: “After the reporting period, Cherry has added some strategic acquisitions to its portfolio, partly through the acquisition of 71 per cent of Almor Holding, an online casino with a leading position in the German-speaking markets.
“The acquisition has, during the first six months, reported an EBITDA of approximately €1m. The acquisition will contribute strongly both in terms of increased growth and increased profits for Cherry.
“In addition to this Game Lounge, owned by Cherry, has acquired a leading Finnish affiliate’s domains and affiliate agreements. This is expected to increase EBITDA with more than €600,000 per year and bring in more than 10,000 new depositing customers to Cherry and other operators during a three-year period, rapidly increasing volumes of existing brands.”