UKGC Grants Licence to Cherry AB as Revenues Increase

UKGC Grants Licence to Cherry AB as Revenues Increase

Cherry AB

The UK Gambling Commission has recently granted Cherry AB a gambling licence.

The Sweden-based gambling operator has announced that its PlayCherry LTD subsidiary has received a casino and sports betting licence by the UKGC. Cherry iGaming Chief Executive Jonas Wåhlander has said that the UKGC approval is another significant step for the company’s growth.

It’s essential for the Cherry brand to establish its presence in key segments in the UK region. The UK licence is an addition to its existing licences in Curacao, Schleswig-Holstein, and Malta. Mr.Wåhlander says that it will roll out and as its initial offerings in the region.

Cherry AB’s Revenues Soar in Q3

Cherry reports that its revenues were up 39% to SEK 214m (US $23.6m) while earnings soared 78% to SEK 30.9m in Q3. It’s online products cover for 82% of its revenue was also up from its 72% showing in the previous year.

Cherry’s online revenues have improved 39% to SEK 142.8m as active customer ranks grew 47%. These figures don’t include Cherry’s recently-acquired Cherry says the company treats its recently acquiring gaming companies as independent entities.

Malta-based ComeOn’s revenue has increased 36% to SEK 263m and earnings more than doubled to SEK 78m thanks to increased volume and cost controls. Cherry AB says that it will look at bond financing options which will enable options to acquire the remaining stake in ComeOn.

Cherry AB’s Land-Based Gaming Operations Plunge

While Cherry’s online products are enjoying a great revenue period, its land-based offerings have plummeted to 7% to SEK 39.5m. This is due to a mass requirement of new croupiers and reduced visitation from gamblers.

Cherry AB’s and H1 2017

Cherry AB Share

Updating the market on its H1 2017 interim results, the governance of Stockholm-listed online gambling group Cherry AB is confident of hitting its full-year targets and corporate expectations, following a strong opening six months of trade.

An enlarged Cherry would report H1 2017 group revenues of SEK 1 billion (€106 million), up 192% on like-for-like 2016’s SEK 370 million.

Aided by an improved period operating margin of 16.3% (2016:11%), Cherry would report an EBITDA increase of 334% to SEK 176 million (€18 million – H1 2016: SEK 40 million).

Closing a busy H1 2017, Cherry governance would declare group operating profits of SEK 51 million (€5.2 million) doubling H1 2016’s SEK 25 million.

Detailing highlights to investors, Cherry governance reported a period of strong KPI gains across its product portfolio. The company further states that its online gaming division will deliver stronger results once it fully incorporates European operator ComeOn’s assets which its fully acquired last May.

Presenting his first set of interim results as Cherry AB CEO Anders Holmgren detailed that the company had the capabilities of becoming the fastest growth multi-product firm in the online gambling sector.

Cherry AB share

“Cherry continues to be a profitable, fast-growing company, even if the integration of ComeOn! has not yet reached full positive effect. By further diversifying and consolidating our operations, we strengthened our platform and thus the conditions for long-term leverage. Cherry showed strong growth in the second quarter and revenues increased 179% to MSEK 536, of which 37% was organic. We continue to grow with good profitability. EBITDA increased by 524% to MSEK 93 and the EBITDA margin was 17.3%.” Holmgren detailed

“Game development and Performance-based marketing are the stand-out performers, but Online gaming has not quite been delivering in line with our plan. However, the Online gaming business continued to develop positively. Revenue grew by 241% to MSEK 437, with organic growth of 31%. EBITDA improved from MSEK 5 to MSEK 62 compared with the same quarter last year and the EBITDA margin increased from 4% to 14%. The rapid merging of ComeOn!’s activities has led to a strong focus on integration, affecting growth. It is worth mentioning that marketing efforts have not yet had the expected effect. At the same time, there is a high level of activity with a variety of initiatives that strengthen both the business area’s organization and the offering as a whole. We assess that the future of ComeOn! looks bright, but that integration will take a little longer than initially anticipated.”

About Cherry AB

Cherry AB

Founded in 1963, Cherry AB has been providing different types of land-based and online gambling operations to customers from a number of European jurisdictions. The company reported its quarterly results earlier this week. Revenue for the three months ended September 30, 2016 increased 39% year-on-year to SEK214 million. The company hailed its online division’s performance, with revenue from iGaming operations growing 39% from the same quarter of the previous year. Group EBITDA amounted to SEK30.9 million, reflecting a 78% increase from the third quarter of 2015.

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