Buoyed Cherry confident of UK success
Operator says it has made "good progress" with ComeOn integration while it also eyes-up Netherlands and Asia markets
Cherry says it will be leaning on its newly-acquired ComeOn business for UK expertise when entering the market later this year, as the operator continues to make progress with the integration of the two companies.
Yesterday, Cherry reported a 113% year-on-year rise in Q2 online revenues and confirmed it had applied for a British licence.
Speaking to EGR, Cherry CEO Fredrik Burvall said he was “hopeful” the Group would obtain its licence in the coming months and operate under both Cherry and ComeOn brands.
“We will then form the strategy with experience ComeOn has in operating in the UK market,” said Burvall.
“It’s a growing market and it’s interesting to get into a regulated market with a fair amount of tax burden into the business. It’s a big market in Europe and it’s important to get a stamp in there. Combined with ComeOn, I think we will be able to succeed in the UK market.”
Cherry’s acquisition of ComeOn was confirmed last month and Burvall said it was making “good progress” with the integration process, which when finalised will boost the Group’s sports betting revenues.
“We see a lot of strengths in both companies that as a combined group will create efficiency and increase results,” said Burvall.
“Of course, it will take some time, we only bought a 49% stake, and we will have an option from the 1 October to buy the remaining 51% shares, so it will take some time before it will be fully integrated.
“It will start to have a much more impact once we start consolidating ComeOn, which has around 25% sports betting revenue and we will also increase the sports betting from the current brands within Cherry.”
Burvall added Cherry has interest in entering the Netherlands and Asia markets, and the firm is going “full steam” ahead to be listed on Nasdaq Stockholm before the end of 2016.