The company posted revenue of SEK73 million (€8.1 million/$11.1 million) in the first quarter of 2014, up 22% on the SEK59.8 million recorded in the same period last year.
Revenue generated from online gaming totalled SEK39.1 million in the quarter, an increase of 43% on the SEK27.4 million it contributed to total revenue in Q1 of 2013.
In addition, deposits by players using Cherry’s online gaming services also increased to SEK80.5 million in the period.
Cherry also reported that 43,320 new customers signed up to its online gaming services in the first quarter while the number of active players was up from 20,001 in Q1 of 2013 to 22,095 in the most recent period.
Despite the company’s success in online gaming, its earnings before interest, tax, depreciation and amortisation fell from a plus of SEK300,000 last year to a negative of SEK4.3 million this year.
In addition, earnings before interest and tax tumbled to a negative of SEK7.6 million.
However, Cherry chief executive officer Emil Sunvisson was upbeat about the quarterly results and remains confident about the remainder of 2014.
“2014 has in many ways had a positive start,” Sunvisson said. “Cherry continues to gain market shares, both online and within restaurant casino.
“Extensive marketing activities have generated a large customer intake, but continue to burden the results. High bonuses in connection with the intake of new clients also have an effect on the turnover.
“We now increase focus at taking care of our customer base and increase loyalty, to thus increase profitability.
“We will continue to further improve our products with the objective to offer maximum fun and excitement.”
source : www.igamingbusiness.com
