Swedish online gaming operator Cherry has revealed that despite having posted a year-on-year increase in revenue during the three months to March 31, it was unable to avoid a drop in profits.
Group revenue in the first quarter reached SEK95.3 million (€10.3 million/$11.6 million), up 31% on the SEK73 million achieved in the corresponding period last year.
Cherry also reported that online gaming grew by 49% during the opening period of the year while deposits also increased by 59% on a year-on-year basis.
However, Cherry revealed that earnings before interest, tax, deprecation and amortisation dropped from negative SEK4.3 million in Q1 of 2014 to a loss of SEK4.5 million in the same period this year.
In addition, earnings before interest and tax fell from a loss of SEK7.6 million in the first quarter of last year to a negative figure of SEK8.9 million this year.
However, despite the losses, chief executive officer Fredrik Burvall was upbeat about Cherry’s performance in the first quarter and remains confident about future growth throughout 2015.
“The first quarter continues to show great growth and group turnover increased by 31%,” Burvall said,
“Cherry’s online business continues to grow and now accounts for 63% of total turnover.
“We also saw steps Cherry has taken, such as focusing on core business and supporting strategic acquisitions, begin to show results.
“Within the online gaming industry, there is a certain degree of consolidation. Cherry is well positioned with a properly functioning platform, where new products can easily be integrated and new skins added.
“This means that Cherry has the ability to become a significant player within the trend of consolidation.
“Cherry’s goal is to grow faster than the market both through acquisitions and organically, focusing on quickly reaching profitability.”
source : www.igamingbusiness.com