Cherry have just announced huge increases in key financial indicators - and they credit growth within their online business as the key driver.
The numbers show huge gains in revenue, which increased to SEK528.7 million ( 55.9 million) in 2015. This is up more than 50% on the equivalent 2014 figure of SEK340 million ( 36 million).
Crucially, revenue gains have also been translated into improved profits, with Earnings Before Tax, Depreciation and Amortisation (EBITDA) rising to SEK35.9 million in 2015. EBITDA for 2014 showed a loss of SEK17.9 million in 2014 so significant progress has been made.
The company has stressed the importance of iGaming growth in explaining the gains made in 2015. Cherry’s origins lie in land based casino, and it is traditionally the biggest ‘bricks and mortar’ gambling site in the company’s native Sweden. It was logical for Cherry to use that experience to create a significant online presence with the advent of the iGaming industry and they have operated an online casino since 2000. In 2015, online operations accounted for 69% of the company’s revenue, up from 55% in 2014 and the online gaming division also recorded an increase in EBITDA from a loss of SEK 18.8 million to a positive SEK21.8 million.
Along with the publication of their full year financials, Cherry also shared their quarter 4 figures - and they provided a boost to the company’s overall performance. Revenue for the final three months of 2015 was up 72% in comparison to the same time period in 2014 with EBITDA leaping from a negative SEK6.5 million to positive SEK23.4 million.
Cherry expect further growth in their online gaming business to continue the current trends. Frank Burvall, the company’s CEO, said ‘Cherry’s online business continues to grow really quickly and now accounts for 74% of the group’s sales and is expected to continue to grow faster than the market. Online gaming is well positioned today, with a platform that makes it possibly to quickly and efficiently add new products and skins’.
Mr Burvall also spoke of the company’s intention to seek online casino licenses in regulated markets to increase the company’s presence and open up new revenue streams. They have already put the wheels in motion to that end, by submitting an initial application for a gambling license that would allow them to operate in the UK.