Cherry's online business enjoys triple-digit Q2 revenue growth
Stockholm-based firm's increased marketing activity drives increase in customers and deposits
Cherry has reported a 113% year-on-year rise in online revenues for the second quarter of this year with an influx of new and active customers driving growth.
Revenues for the period ending 30 June 2016 amounted to SEK 139.2m (£12.5m), up from the SEK 65.5m (£5.9m) total the firm posted in the same period last year.
The online arm also made a profit during the quarter, with EDITDA amounting to SEK 8.6m (£770,000) after previously making a SEK 2.3m loss in Q2 2016.
Active customers soared by 202% to 79,048, while the number of new customers increased by 150% to a total of 100,657.
Marketing spend increased during the quarter increased from SEK 23.5m last year to SEK 47m (£4.2m), and represented 34% of online gaming revenues for the period.
Mobile accounted for 42% of online revenues, a small increase from the 36% the channel accounted for in Q2 2016.
Fredrik Burvall, Cherry CEO said the business is “well positioned” and confirmed its intention to enter the UK market with the application for a licence.
“Cherry iGaming will, in addition to the licences it already has, continue to seek local licences where we expect strong growth, and we have also initiated an application process to obtain an operator’s licence in the UK, which is expected to be in place during the second half of 2016,” he said.
“Our ambition is to continue to grow faster than the market and we are well equipped to do this both through organic growth and acquisitions.
“Our strategy, in combination with differentiated business areas, will create excellent opportunities for continued high growth, high profitability and strong value growth.”
Group revenues for the quarter increased by 80% to SEK 191.7m (£17.3m), with Cherry’s online arm accounting for 81% of total revenues.
Elsewhere, the Group’s B2B arm Yggdrasil Gaming performed strongly with Q2 revenues increasing by 810% to SEK 19.9m (£1.8m) with EBITDA amounting for SEK 9.8m (£900,000).
During the quarter, Yggdrasil secured five new contracts, including bwin.party and Interwetten.
Burvall added that following the purchase of ComeOn, which was not included in the figures released today, the company still intends to be listed on the Nasdaq Stockholm during 2016.