Reporting strong growth in its online gaming portfolio and the continued progress of Yggdrasil content, European igaming operator Cherry Gaming AB returned to positive EBITDA earnings for its Q3 2015 performance (period ending 30 September).
A strong quarter performance, saw Cherry Gaming record group revenues of SEK 154 million (£11 million) up 71% on Q3 2014’s SEK 90 million (£6.9 million). Cherry Gaming reported that online gaming revenues accounted for 72% (SEK 107 million) of total period revenues.
The operator was pleased to announce that the firm had ‘returned to black’ recording Q3 EBITDA earnings of SEK 17.4 million (£1.3 million), compared to the like for like 2014 SEK -8 million (- £200,000).
Cherry Governance detailed that the new acquisitions of German facing operator Almor Holdings and the strategic purchase of Finnish affiliate/acquisition portals by marketing arm Game Lounge, had helped drive online gaming revenues and player activity.
During the Q3 period the operator registered a 202% increase in active players to 60000 (Q3 2013 – 19,500). Cherry Gaming governance further reported a surge in new customers amounted to 426,274 (37,219). The number of registered customers amounted to 981,488 (434,407) at the end of the quarter.
Fredrik Burvall CEO of Cherry Gaming AB commented on Q3 corporate performance
“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.”
“Cherry’s business area Online Gaming has achieved a strong growth of 131 percent during the third quarter, and again is showing a profit. Our efforts to improve gaming experience, delivering joy of gaming, and to increase our customer loyalty is beginning to create results. We are seeing strong growth in mobile gaming and will continue to improve our mobile offerings. Further synergies are expected when Almor’s trademarks are migrated to Cherry’s platform. Today, Online Gaming is well positioned, using a well-functioning and flexible platform, where new products can easily be integrated and new skins easily added.”
“In addition during the quarter, Yggdrasil has developed strongly and September was the first month with a positive EBIT. Yggdrasil has delivered three new quality games (Holmes And The Stolen Stones ™, Vikings Go Wild ™ and Chibeasties), which were well received by both customers and operators. In the third quarter, revenues increased by 339 percent and a new agreement was signed. In addition to this, two new agreements were signed regarding Yggdrasil’s popular progressive jackpot game, Joker Millions.”
Performance Overview – Cherry Gaming AB Q3 2015