Cherry posts online gaming growth in Q3

Highlights of the third quarter:

• Positive EBIT of MSEK 11.0 – 131% growth for Online Gaming and 339% growth for Yggdrasil
• Group revenue increased by 71 percent to MSEK 154.1 (90.4). Online makes up 72 percent (53) of the group revenue.
• Profitability improved considerably and the group showed a positive result. EBITDA amounted to MSEK 17.4 (-3.0). EBIT amounted to MSEK 11.0 (-7.0).
• The result after tax amounted to MSEK 12.1 (-8.8), equivalent to SEK 0.65 (-0.69) per share after dilution & minority int.
• Online Gaming grew by 131 percent and EBITDA amounted to MSEK 14.5 (-4.7).
  Restaurant Casino increased turnover by 13 percent and EBITDA increased by 7 percent to MSEK 5.3 (5.0).
• Yggdrasil Gaming grew by 339 percent and EBITDA amounted to MSEK 1.9 (-1.4). September was the first month with a positive EBIT. Yggdrasil has initiated an application for an UK operator license.
• In July, Cherry acquired 71 percent of the shares in the Malta-based company Almor Holding Limited – a leading online casino in German speaking markets.
• In late July, Cherry-owned Game Lounge acquired a prominent Finnish affiliate’s domains and affiliate agreements. The acquisition is expected to increase EBITDA figures by more than EUR 600,000 annually, and bring in more than 10,000 new depositing customers to
  Cherry and other operators over three years.
• Nine-month interim period: Strong growth within all business areas and a positive EBITDA
• Group turnover increased by 49 percent compared to the previous year and amounted to MSEK 356.2 (239.8). Online makes up 67 percent (54) of the group revenue.
• Profitability improved considerably and EBITDA amounted to MSEK 12.5 (-11.4). EBIT amounted to MSEK -3.1 (-22.3).
• The result after tax amounted to MSEK -6.4 (-24), equivalent to SEK -0.72 (-1.84) per share after dilution & minority int.
• Online Gaming grew by 83 percent and EBITDA amounted to MSEK 6.4 (-14.0).
  Restaurant Casino increased turnover by 11 percent and EBITDA increased by 20 percent to
  MSEK 14.5 (12.1).
• Yggdrasil Gaming grew by 215 percent and EBITDA amounted to MSEK 0.3 (-3.2).
• In January 2015, a controlling interest in the affiliate company Game Lounge Ltd was acquired by Cherry. This is expected to enable Cherry to rapidly increase its volumes at a significantly lower cost per customer than before.

Fredrik Burvall, Cherry's CEO, said: “We are pleased to be able to show a strong growth and profit for the third quarter. Our strategic acquisitions have been successfully integrated within Cherry and all business areas are now showing a profit. The third quarter continued to show strong growth and the group turnover increased by 71 percent. Cherry's online business continues to grow and now represents 72 percent (53) of group sales. Going forward, it is expected to grow faster than the market.”