Scandinavian affiliate group Cherry AB has described its Q2 2018 period as being “characterised by expansion and investment”.
The statement, made by Cherry’s Acting President and CEO Gunnar Lind, came as the Stockholm-listed online gambling group recorded a revenue increase of 41% (SEK 753 million, up from SEK 536 million), an EBITDA increase of 78% (SEK 165 million, up from SEK 93 million) and improved profitability for the three-month period.
Results for the first six months of 2018 (January to June) were similarly positive, with group revenue up 33%, an EBITDA rise of 103% and profit for the period up from SEK 51 million to SEK 180 million.
Cherry also completed the acquisition of 44% of the shares in affiliate firm Game Lounge, totalling 95% of shares outstanding, and 7.5% of shares in online gaming company Almor Holding, which gave Cherry a total of 90% of shares outstanding.
Notable highlights for the two-months following on from the recorded period include being granted a sports betting licence in Poland and Game Lounge acquiring two premium domains in North America – betNJ.com for sports betting and casino in New Jersey and the Mexican domain OnlineCasino.mx.
Lind added: “With a revenue increase of 41 percent, of which organic growth amounted to 39 percent, the quarter was characterized by expansion and investment. Investments during the quarter were made primarily in the marketing of existing and new brands, and of games developed in-house by Yggdrasil and Highlight Games.
“Cherry has strong and broad operations meeting the market’s demand for quality in everything we deliver, and it is gratifying to note that July demonstrated that our investments have generated returns in line with our expectations.
“The second quarter of 2018 was characterized by a focus on growth, in the short term as well as long term. Investments in marketing were significant and effective. Online Gaming is expanding and strengthening its position in key markets, while the business area’s new brands are also rapidly building awareness and establishing a good customer base.
“Game Development and Online Marketing have also acted proactively through increased investment in game development, acquisitions and a clearer presence in Sweden. To me, as acting CEO, this is a secure situation providing opportunities to continue strengthening Cherry in its core markets and, in parallel, to assess complementary growth alternatives.”