Cherry AB, Swedish gambling operator has announced that they have grown “substantially faster than the market” in the Q3 results (three months to September 30, 2016) after recording widespread financial growth.
Revenue for this third quarter amounted to SEK214 million (€21.4 million/$23.8 million), up 39% from 2015.
Earnings before interest, tax, depreciation and amortisation (EBITDA) totaled SEK30.9 million (€2.1 million/$3.3 million) an increase of 78% from the same quarter last year.
Earnings before interest and tax (EBIT) rose to SEK21.5 million (€2.1 million/$2.3 million) despite the costs involved in the acquisition of 49% stakes in gambling company ComeOn Malta Ltd with a consideration €80 million earlier in July.
Game Lounge is Cherry’s Malta based newly added subsidiary which handles online marketing within the gambling industry. There was a 167% increase with EBITDA rising by 104% to SEK6 million (€601K/$658K)
Cherry’s game development studio Yggdrasil Gaming jumped in quarterly revenue and EBITDA of SEK9.2 million (€922K/$1 million), an increase of 385% from the same period last year.
Group revenue for the year to September 30 was at SEK583 million (€58.4 million/$64 million) a hike of 64% to the SEK356 million (€35.6 million/$39 million) posted at the same time last year.
EBITDA rocketed 472% year-on-year to SEK714 million (€71.5 million/$78.3 million), EBIT improved from a loss of SEK3.1 million to a positive of SEK45 million (€4.5 million/£4.9 million), with online gaming revenue also up 78%.
Fredrik Burvall, chief executive of Cherry, said: “Cherry continues to grow substantially faster than the market.
“For the third quarter, organic growth amounted to 38% and total growth of 39%. The formula for success is based on the strategy Cherry implemented two years ago, in which we have developed our business areas and added strategic acquisitions of fast-growing companies where the founders and entrepreneurs continue to stay active in the business.
“Today, Cherry is an innovative and fast-growing gaming company, operating across a broad part of the gaming value chain.
“Our business areas provide Cherry with diversified and profitable revenues from four separate and strong business areas, with the potential for strong onwards development.
“Our ambition is to continue to grow faster than the market, and we are well prepared to do this, both through organic growth and via acquisitions.”