Online growth boosts Cherryforetagen results

Swedish online gaming firm Cherryforetagen AB has released its interim financial results for 2011 showing a 24.8 percent year-on-year increase in group revenues to SEK 467.8 ($70.4) million.

Stockholm-based Cherryforetagen operates the PlayCherry.com online gaming site alongside NorgesAutomaten.com, SverigeAutomaten.com and DanmarksAutomaten.com and declared that full-year earnings before interest, tax, depreciation and ammortisation amounted to SEK 48 ($7.22) million, which was up from SEK 34.2 ($5.14) million in 2010, while those prior to interest and tax grew 57 percent year-on-year to SEK 36.6 ($5.5) million.

In addition, revenues from online gaming at Cherryforetagen rose 64 percent year-on-year to SEK 219.1 ($32.97) million while the company reported a 143 percent boost in the number of registered customers to 218,502 to take its overall annual profit after tax to SEK 33.8 ($5.08) million, which was considerably better than 2010’s SEK 20 ($3.01) million.

“Cherryforetagen's focus on growths in online gaming has dominated 2011, which has resulted in strong growth with highly increased revenues and a large customer intake,” said Emil Sunvisson, Chief Executive Officer for Cherryforetagen.

“Costs to develop and market new products have resulted in lower margins for the year. Cherryforetagen has now decided to launch EuroSlots.com under its own license in Malta, which we believe will generate future value for Cherryforetagen and enhance our flexibility and margins over time. I am confident that Cherryforetagen’s investments to increase growth will generate profits in the future.

“Cherryforetagen will continue to act with responsibility. Each year, Cherryforetagen supports more than 200 local sport clubs in Norway. In Sweden, we support cultural events and for the fourth year we are the main financiers of the Stockholm Street Festival. We also support the Special Olympics in Europe, which is a worldwide organisation conducting and developing sporting activities for adults and children with various disabilities.”