Cherry AB’s Online Revenue Increases by 118% in Q1

In the first quarter of 2016, Nordic gambling operator Cherry AB’s online revenue increased by more than twice the amount during the same period last year.

For the three months ending March 31st, Cherry’s overall revenue increased by 86% to SEK177.3m (€19m) while the company reported positive earnings of SEK 26.5m compared to a loss of SEK 11.8m during the same period last year, and an after-tax profit of SEK 17.5m.

Online revenue spiked by 118% to SEK 127.3m. Online now accounts for 78% of the overall revenue, from the 63% in the same quarter last year. The amount of new online customers underwent a similar surge, topping SEK 104k compared to 2015’s first quarter with less than SEK 37k.

The online gains reflect contributions from the lengthy list of acquisitions of 2015, which included the Game Lounge affiliate business, Almor’s German-facing brands, some Finnish affiliate domains as well as Malta-based Moorgate Media.

Fredrik Burvall, CEO of Cherry AB, said that the impressive online performance was a combination of the acquisitions and the strong organic growth. CherryCasino added a sportsbook option, which currently contributes “less than 5%” of revenue, Burvall says, but he hopes that this figure will rise during the Euro 2016 football event this summer.

Yggdrasil Gaming, Cherry’s B2B online software offshoot, reported an increase in revenue by 519% to SEK 14.2m. The gains reflect the company going live in the UK market with six operators, which helped to boost the number of player transactions by a whopping 992% from the same period last year.

Fredrik Elmqvist, CEO of Yggdrasil, said that the company had signed a content supply deal with Bet365 and promised that more deals would be announced within the coming months. Elmqvist noted that the UK was a highly competitive market, but early indications of Yggdrasil’s performance are encouraging.

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