After having its class B shares listed with the Nasdaq Stockholm stock exchange last month, online casino operator Cherry AB has now released its third-quarter financial results showing a 165% increase year-on-year in overall revenues to $67.71 million.
The Stockholm-based firm revealed that its earnings before interest, tax, depreciation and amortization for the three months to the end of September swelled by some 263% year-on-year to reach $13.37 million while its profit improved by just over 35% to $5.01 million.
Cherry AB, which is responsible for over a dozen online gaming domains including SveaCasino.com, SunnyPlayer.com and CherryCasino.com, spent approximately $228.12 million in May to acquire Malta-based rival ComeOn Malta Limited and is now ranked as the third largest firm of its kind in Scandinavia. It earlier reported that its overall second-quarter revenues had risen by 179% year-on-year to hit $66.47 million with its earnings before interest, tax, depreciation and amortization for the period advancing by 524% to reach $11.53 million.
For its online gaming business area, Cherry AB stated that third-quarter revenues had grown by 124% year-on-year to $53.59 million thanks to its earnings before interest, tax, depreciation and amortization margin growing by two percentage points to 15%.
“The integration of the online gaming operations within ComeOn [Malta Limited] continued to affect growth and profitability negatively in the third quarter,” read a statement from Cherry AB.
Cherry AB is moreover responsible for online casino games developer Yggdrasil Gaming Limited and declared that this enterprise had continued its ‘very positive development’ by chalking up record third-quarter earnings and revenues thanks to ‘a number of important new customer license agreements with major new operators’. It explained that the subordinate’s future results are expected to be furthermore aided by its recent launch of the new five-reel Jungle Books video slot and ‘a new development studio in Stockholm’.
Anders Holmgren, Chief Executive Officer for Cherry AB, declared that his firm continues to ‘develop strongly’ before predicting that he expects its full-year earnings before interest, tax, depreciation and amortization to come in at around $47.85 million off of consolidated revenues of approximately $263.16 million.
“As the industry’s most complete gaming company, our offering has a broad base and we are able to respond quickly when we perceive opportunities,” read a statement from Holmgren. “We have continuously reviewed the integration process within the business area and can affirm that the lion’s share has been completed. Together with the new management this lays a solid foundation for increased growth and profitability.”