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Cherry AB Interim Report January–September 2018
Reading Time: 7 minutes
All business areas strengthen positions
THIRD QUARTER
• Group revenue increased by 58 percent to MSEK 899 (567), with organic revenue growth amounting to 46 percentages. Acquisitions contributed 1 percentage and currency 12 percentages points.
• Profitability improved, and EBITDA increased by 130 percent to MSEK 258 (112) and the EBITDA margin was 29 percent (20).
• Profit for the period amounted to MSEK 188 (42). EBIT was affected positively by an item affecting comparability of MSEK 57, following the revaluation of the previously owned holding in Highlight Games.
• Earnings per share before and after dilution amounted to SEK 1.75 (0.22) and SEK 1.74 (0.21) respectively.
• Cherry holds 60.4 percent of the shares in the former associated company Highlight Games.
• Cherry subsidiary ComeOn applied for eight Swedish gaming licenses in September.
• On 24 August, Anna Bergius and Claes Ruthberg announced that they would be stepping down from their assignments as members of the Board of Directors of Cherry AB (publ) with immediate effect.
INTERIM PERIOD
• Group revenue increased by 42 percent to MSEK 2,332 (1,644), of which organic growth amounted to 32 percentages. Acquisitions contributed 1 percentage and currency 9 percentages.
• Profitability improved, and EBITDA increased by 114 percent to MSEK 615 (288) and the EBITDA margin was 26 percent (18).
• Profit for the period amounted to MSEK 367 (93). EBIT was affected positively by an item affecting comparability of MSEK 57, following the revaluation of the previously owned holding in Highlight Games.
• Following new share issues, the number of shares has increased. As of September 30 2018, the number of shares is 4,988,000 Class A shares and 100,680,026 Class B shares, totalling 105,668,026 shares.
• Earnings per share before and after dilution amounted to SEK 3.31 (0.49) and SEK 3.30 (0.49) respectively.
EVENTS AFTER THE END OF THE PERIOD
• In July, Cherry Online Polska was granted a sports betting license for the Polish market. A new brand, PZBuk, was launched in October
• On 17 October, Cherry agreed to acquire the remaining 5 percent of the shares in the subsidiary Game Lounge.
• In September and October, Yggdrasil signed agreements with the largest gaming operators in Finland (Paf and Veikkaus) and in Sweden (Svenska Spel and ATG).
Comments by the CEO
Investments in marketing generate profitability
The second quarter of the year ended well and the positive trend in sales and gaming volumes continued throughout the third quarter. This is mainly explained by our high level of quality and innovation, which is appreciated by our customers and by all players.
As noted in our previous interim report, investments in marketing and operations strengthen the Group’s development both short and long term. Cherry’s strategy of maintaining proximity to all parts of the gaming market and end customers is crucial to our continued growth. This allows us to act quickly and invest resources where we see that such measures will provide the best return.
Consolidated net revenues rose from MSEK 567 to MSEK 899 compared with the corresponding period in 2017 – an increase of 58 percent. Organic growth was 46 percentages Corporate acquisitions contributed 1 percentage and currency by 12 percentages. EBITDA rose by 130 percent, from MSEK 112 to MSEK 258. Accordingly, the EBITDA margin for the third quarter increased to 29 percent (20).
There are several bright points in development in the third quarter, and I particularly want to highlight the favourable development in Online Gaming. ComeOn has succeeded very well with the broad plan of action that was brought into effect just over a year ago. All employees are making a tremendous effort and the company is now able to use more of its time and energy to establish even stronger positions in existing and new markets like in Poland, as well as with new brands such as Blitzino and PZBuk. ComeOn has shown itself able to launch innovations that are quickly appreciated by the market and brands that win over loyal customers. In our assessment, ComeOn has good opportunities to strengthen its position in the Swedish market following the re-regulation to be introduced next year. In line with our multi-brand strategy, ComeOn has applied for licenses for each of its brands in the Swedish market. A total of eight licence applications have been submitted to the Swedish Gambling Authority. The terms of a regulated market should be an advantage for our entire industry, and especially for ComeOn, which has several strong brands, established practices for responsible gaming, and a wide range of high-quality games offering good opportunities to win.
Game Development, with Yggdrasil and Highlight Games, also had a good quarter. The companies are run by strong entrepreneurs and skilled employees who understand what works in the market. Yggdrasil has progressed some way on its journey of growth, while Highlight recently launched its game product in test markets in Africa, and both companies are reporting success.
Yggdrasil’s games are now ranked among those that gaming operators must include on their platforms and, in many cases, Yggdrasil’s games are market leaders in terms of quality, resulting in agreements with several major gaming companies, including 888 Holdings and Tipsport and, in October, national operators Svenska Spel, ATG and Veikkaus. In September, Yggdrasil presented an agreement with XSG, a Taiwanese gaming operator. Through Cherry’s established relationships, we see good opportunities to continue developing Yggdrasil with strategic partnerships in new geographic markets, and the company continues to strengthen its organization with additional employees and a presence in the UK.
Highlight Games’ test launches in several African countries have gone well and the company reported initial revenues at the end of the reporting period. The focus is now on introducing the in-house developed game Soccerbet
in Italy and the coming months will be characterized by intensive efforts to launch the game together with major Italian game operator Eurobet.
Online Marketing continues its favourable development. Game Lounge has an exciting strategy and perceives good opportunities to grow in several geographic areas, including the US and Latin America, and in new verticals. In our assessment, growth will also continue in Sweden. The regulations open up for new channels, allowing marketing to be broadened and updated, both of which are Game Lounge’s strengths. The company is recruiting new employees in Sweden and other countries to meet anticipated increased activity among various market players.
Gaming Technology offers programs important to gaming operators in being able to run online casinos. Most sales are made to customers within the Group and operations are developing according to plan. XCaliber has renegotiated certain agreements with Cherry Group companies, negatively affecting the business area’s earnings in the third quarter. Since July, XCaliber has allocated significant resources to assignments for the Cherry Group’s gaming operators, and the assessment is that demand from these operators will maintain a high level.
In the early part of the fourth quarter, Restaurant Casino gained the permits necessary for operations at Swedish gaming venues. This is a gratifying development as the operations have been greatly affected by the delay in processing by the Swedish Gambling Authority. This means we are able to resume essential parts of our business and develop Cherry Spelglädje’s offering. Another positive factor is that the maximum stake is being raised to SEK 232.50 effective from 2019. Both factors mean we now envisage more positive development in our oldest business area compared with the current year.
Our land-based gaming operations have extensive experience of compliance with gaming regulations in Sweden and we intend to build on Cherry Spelglädje’s experience in the upcoming regulation of the remaining parts of the Swedish gaming market.
In many ways, Sweden is the most important market for us and for several European gaming companies, many of which have Swedish roots in the form of founders and entrepreneurs with abundant initiative. There is also an ecosystem here with competent employees and access to financing at different phases. The Swedish market remains highly important for Cherry, while we are also seeing significant growth in other markets and our strategy continues to be to expand into markets where we see opportunities for good returns.
Cherry has a long history and is one of the largest and most profitable companies with a broad presence in gaming, entertainment and media. This affords us an overview and understanding of events in our sector, enabling us to quickly optimize our resources in areas where we see opportunities for development. We will continue to strengthen our positions in markets approaching regulation, including Sweden and other major markets, such as states in the US. The clear regulations that such markets offer are of interest to Cherry and its subsidiaries as they provide opportunities for long-term commitment and stability. Unfortunately, we are noting that legislators, most recently in the UK, sometimes alter gaming rules at short notice, in our view this is counteracting the basic purpose of the regulations.
On 17 October 2018, Cherry decided to complete the acquisition of Game Lounge by purchasing the remaining 5 percent of the shares in Game Lounge Ltd for a purchase consideration equivalent to at most MSEK 260. The initial purchase price of MSEK 100 is fixed, while the remaining two items are conditional on Game Lounge’s earnings reaching certain levels for the remaining payment in cash or shares to occur. Game Lounge’s operations have developed well, and Cherry’s Board of Directors assesses that the company’s market conditions will remain favourable. The sellers will continue in their senior positions, are shareholders in Cherry and participate in the Group’s incentive programmes. The sellers are Game Lounge employees. Against this background, the acquisition constitutes a related party transaction and must therefore be approved by an extraordinary general meeting in Cherry AB, on 21 November 2018.
As we indicated in the report for the second quarter of 2018, Cherry continued to strengthen its operations on several fronts in the third quarter. The favourable performance generates the conditions we consider necessary to intensify efforts with the Group’s long-term financing and, accordingly, with the flexibility that can strengthen Cherry and its profitability. We are conducting ongoing evaluations of various alternatives for replacing existing bond loan.
As Acting CEO, I am proud of all of the efforts being made within the Group and I look forward to summarizing Cherry’s operations over 2018 as a whole.
Gunnar Lind
Acting CEO
MARKET OUTLOOK
The gaming market is currently growing strongly and Cherry estimates that demand in the Group’s largest geographic markets will continue to develop favourably. The Group continuously studies conditions for new business within the related business areas and geographic markets in and outside Europe.
The Group’s focus is on generating shareholder value by being an active participant in the development of new and existing companies in the gaming, media and entertainment sector. The objective is for the companies to become market leaders in their respective areas by building their core values of entrepreneurship, responsibility and commitment. These are important prerequisites for the Group to be able to achieve its financial targets and to continue its successful profitable growth, through both organic growth and acquisitions, in existing and new verticals and geographic markets.
PRESENTATION OF THE INTERIM REPORT
The company’s Executive Chairman, Morten Klein, Acting President and CEO, Gunnar Lind, and CFO Christine Rankin, will present and comment on the report at a telephone conference at 10:00 a.m. CET on 31 October 2018. The presentation materials will be available approximately one hour earlier at www.cherry.se. The presentation can be followed via www.cherry.se and/or www.financialhearings.com. To participate by phone, call +46 8 566 426 97 (SE) or +44 203 008 9807 (UK).
For further information, please contact:
Christine Rankin, CFO, Telephone: +46 76 539 94 92, [email protected]
Anders Antonsson, IR & Communications, Telephone: +46 709 994 970, [email protected]
CHERRY IN BRIEF
Cherry is an innovative and fast-growing gaming company with operations in gaming, entertainment and media. The company was founded in 1963 and today, Cherry operates through five diversified business areas: Online Gaming, Game Development, Online Marketing, Gaming Technology and Restaurant Casino. The objective is to grow organically in combination with strategic acquisitions of fast-growing companies. Cherry employs some 1,300 people and has about 9,325 shareholders. The company’s class B-share has been listed on the Nasdaq Stockholm exchange, Mid Cap segment since 18 October 2017.
Source: Latest News on European Gaming Media Network
Online poker’s not the sleepy mix of static cash tables and rinse-repeat tourney grids it used to be. Business Wire predicts that by 2030, the market will hit $11.4 billion, fuelled by cross-platform play and new competitive formats. But here’s the catch: growth brings noise. And in 2025, grabbing attention is only half the game — keeping it has become just as critical. And we all know that retention is the table you can’t afford to fold.
Over the recent years, gamification has turned into one of poker’s strongest retention plays. When it’s done right, it keeps players around, sparks repeat visits, and forges loyalty. They come back tomorrow, next week, next month — and your competitors can’t pry them away. The idea sounds simple enough — weave in game-style mechanics to make poker richer and more engaging, without killing the skill game underneath.
EvenBet Gaming’s research breaks it into three targets:
- Give players more reasons to return.
- Make onboarding smooth and rewarding.
- Build loyalty with experiences that feel personal, competitive, and worth bragging about.
Churn burns profit. Gamification done right is an infrastructure that breeds loyalty. Done wrong? You’re just another site with flashing badges that no one cares about.
Gamification, Not Gamblification
Before diving into mechanics, it is important to set one thing straight. Gamification boosts engagement — leaderboards that show you who’s climbing, missions that push you to try new formats, achievement badges you actually want to unlock. It challenges players, rewards skill, and deepens the game. “Gamblification” is where it all turns sour. That’s when mechanics push for profit at the expense of player wellbeing — pressure-loop rewards, unclear payout systems, anything designed to keep people clicking long after the fun’s gone. These tactics can backfire, invite regulatory attention, and eat away at players’ trust.
Gamification should make the player-platform bond stronger. It’s open, skill-focused, and it stays within responsible-gaming boundaries. Otherwise, you’re just playing short-term roulette with your long-term survival.
Core Gamification Mechanics in Poker
Here’s the thing — gamification works best when it’s layered, not just thrown on top of the existing game. You’ve still got poker at the centre, but now there’s more to play for. EvenBet Gaming’s toolkit has a bit of everything, with a mix of proven features that operators need to keep players active and returning.
Leaderboards
People like to see where they stand, and a good leaderboard hits that primal “beat the other guy” instinct. Doesn’t matter if it’s hands played, rake pulled, or weird challenges only five people care about. Timeframes can be daily, weekly, or monthly, ensuring fresh challenges and preventing leaderboard fatigue. Players stick around to climb, rivals get personal, and your community gets tighter.
To avoid burnout and excessive gamblification, EvenBet’s customer success department doesn’t recommend creating only leaderboards based on pure game volume. As a flexible tool, leaderboards have a better use for boosting attention to specific game or tournament types (for example, hands played in 5-card Omaha), creating targeted demand.
Missions, Quests, and Challenges
Give a player a target and they’ll chase it. Win with pocket sevens, log 50 games, or try that Sunday knockout tourney — whatever keeps them moving. Segment it: beginners get gentle ramps; grinders chase big targets. Toss in tickets, cash, or even just brag-worthy status bumps — and suddenly, casual play has a storyline. This meta-layer adds structure to casual play, nudging players into consistent engagement.
“Different mission types work specifically on various segments of a poker room audience”, explains Nikita Golodaev, Business Account Manager at EvenBet Gaming. “For example, guided missions targeted to explore poker room features and game types keep new players on the platform and decrease early churn. Soft streaks (3-5 days) encourage regular sessions without burnout”.
Achievements and Badges
First win, first deep run, first time they actually fold kings preflop — badges give players proof they’re climbing. Badges make progress visible, they’re milestones and conversation starters. This visual recognition encourages players to develop their skills and makes long-term goals more tangible.
Progressive Systems
Experience points (XP) and rakeback have always been staples in poker loyalty systems. They’re poker loyalty basics. EvenBet’s Progressive Rakeback with a tiered, time-limited structure turns the game into a race — 6 tiers from Aluminium all the way up to Platinum. Every tier gives you a little more, but fall behind — and you drop. The gamified progression adds urgency, encouraging regular play to maintain or advance the level.
According to Nikita Golodaev, clear and balanced progressive systems work best for projects with an existing core of regular mid-core players: they are already investing significant time into the game and are still tempted by rewards provided in the progressive tracks, unlike VIP and high-stakes players who are more interested in recognition of their status.
Put it together, and you’ve got a cycle: play, check your rank, tick missions, unlock the badge, check the board, eye the next tier. And then do it again tomorrow. It’s sustained engagement without sacrificing poker’s competitive core.
Advanced Applications — Tournaments and Hybrid Formats
Think of tournaments not as one-off events, but as frameworks. They aren’t just a product — they’re an engagement machine. You can hang all sorts of engagement hooks on them — the kind that keep players checking in and keep them motivated from registration to the final hand. Layer in gamification, and you have a retention funnel operators dream about.
Formats with a Twist
EvenBet’s flexible setup allows operators to launch virtually any format: high-GTD marathons, Spin&Go sprints with random multipliers, quick-fire Sit & Gos for casuals, and velvet-rope VIP tables for the whales. Add Mystery Bounty, Progressive Knockout, or Multi-flight qualifiers, and you’ve got unpredictability on tap. Which means the game always stays interesting.
Linking Tournaments to Gamification Layers
Hybrid play is where tournaments meet missions, leaderboards, and badges:
- “Climb the Ladder” challenges that pay points for each event played.
- Leaderboards stretching over weeks and sparking long grinds.
- Achievements for milestones like “Final Table Three Times in a Week” or “Knock Out 10 Players in a PKO.”
This crossover keeps casual players chasing goals and competitive players grinding for prestige — all while strengthening retention loops. When you nail it, tournaments become recurring, gamified events that handle acquisition, retention, and loyalty in one package.
Why It Works for Operators
Gamification in online poker is not just a UX add-on — it moves numbers if done properly.
- Retention and monetisation: longer sessions, more logins, bigger rake, and better LTV. Plus, new players convert faster when there’s a mission to chase.
- Skill development: challenges teach strategy, confidence, and adaptability without feeling like homework.
- Audience segmentation: freerolls for newbies, high-stakes bounties for veterans. You serve each player just the right challenge without losing focus.
Risks and Implementation Challenges
Gamification’s upside is clear — but mess it up, and it quickly becomes a liability. When these risks are managed, gamification pays off big time. Treat it with respect and care like a strategy, not a shortcut or gimmick.
Over-Gamification
Stack too many overlapping mechanics, and the gaming experience turns into a mess. Players get overwhelmed, quit the game altogether, or even fall into unhealthy patterns. The balance is in adding enough variety to motivate, without creating constant pressure to act. It’s a fine line between motivation and overload.
Regulatory Compliance
Operating inside responsible gaming guidelines is a must. Rewards should be transparent, achievable, and not designed to exploit compulsive tendencies. As noted by Dmitry Starostenkov, regulators are increasingly wary of features that blur the lines between skill-building and pushing players too hard.
Technical Complexity
Integration has to be smooth. If missions lag, leaderboards glitch, progression breaks, or interfere with core poker gameplay, this erodes trust. EvenBet’s modular system gives control, but operators still need rigorous testing, UX tweaks, and performance checks.
Building Gamification That Lasts
When done right, gamification in online poker isn’t just bells and whistles. It’s a full-on retention driver. Mix leaderboards, missions, badges, and tiered rewards right into the core game, and you create a cycle that hooks players, grows skill, and boosts revenue.
The winning formula is balance: enough variety to keep things fresh. Clarity so players aren’t guessing. Responsibility so the game stays ethical. Data-driven personalisation ensures that every segment — from first-timers to VIP grinders — finds a reason to return.
Our research at EvenBet Gaming is clear: sustainable gamification is a long game. Set measurable goals and transparent rewards, enhance the poker spirit — never overshadow it. Attention is the rarest currency these days. Platforms that get this balance don’t just hold players — they win the loyalty battle.
The post Why Gamification Is Reshaping Online Poker appeared first on European Gaming Industry News.
SlotMatrix, the world’s largest casino content aggregator, has expanded Wild Extravaganza’s reach in the U.S launching in West Virginia, alongside existing markets, New Jersey and Michigan.
Wild Extravaganza is a high-energy 5×3 video slot that packs vibrant visuals, dynamic gameplay, and huge win potential in a 10-payline experience. The game pays left to right, right to left, and even from the middle, offering players multiple chances to win on every spin.
The core feature of Wild Extravaganza is its multiplying wilds, which can stack on three of the five reels and can reveal a 2x, 3x, or 7x win multiplier.
Wild Extravaganza is fully supported by EveryMatrix’s suite of advanced engagement tools, including free spins, leaderboards, and tournaments, helping operators drive acquisition and retention in regulated U.S markets.
This U.S release is part of a recent surge of SlotMatrix exclusive games entering the market, including 3 Coin Treasures, Lara Jones Treasures of Egypt 2, and Glorious Diamonds.
EveryMatrix holds licences in key North American markets, including West Virginia, Michigan, Pennsylvania, Connecticut, and Ontario, and powers more than 300 customers globally.
Stephen Orchard, Head of Commercial Operations, SlotMatrix, said: “Wild Extravaganza is all about giving players thrilling, fast-paced action and the chance to land some seriously big wins. We’re excited to bring this experience to West Virginia as we continue our expansion across the U.S.”
The post SlotMatrix ignites the reels of West Virginia with Wild Extravaganza launch appeared first on European Gaming Industry News.
The company strengthens its market position with the recent launch of sports betting
DATA.BET, a trusted sportsbook solution supplier, will present its expanded portfolio at SBC Summit 2025 in Lisbon, stand D160. The company now offers a unified solution covering sports, esports, and virtual sports.
From September 16 to 18, the company’s representatives will unveil the updated product suite. Building on its established presence in esports and virtual sports betting, DATA.BET has expanded into traditional sports betting, covering over 50,000 sports events per month across 63+ pre-match and 38 live sports disciplines. The company’s 24/7 in-house trading team maintains 93% market uptime while delivering 1000+ betting markets backed by official data partnerships.
Each betting vertical, as well as individual sports and leagues within them, can be activated separately or combined based on market needs. Operators can instantly launch the complete sportsbook solution through a ready-to-use Single Page Application (iFrame), while those with an existing betting platform can integrate directly via the Odds Feed API.
At SBC Summit, visitors will explore DATA.BET’s core products: Risk Management system, Odds Feed, Widgets, Streams, SPA (iFrame), and Bet Builder available for all three verticals. The latest features joined our comprehensive suite include Hot Bundles for express betting optimization and Timeline Widget for enhanced game process tracking.
“This marks our first offline presentation of the complete sportsbook solution we launched in May with our full product range and latest features for betting,” said Natalie Loshatynska, Head of PR & Marketing at DATA.BET. “We look forward to showing SBC Summit participants how our technology empowers operators and platform providers to offer their clients a more dynamic and engaging betting experience.”
Discover DATA.BET’s betting technology solution at stand D160. Connect with the team at [email protected] to schedule a meeting.
The post DATA.BET Secures Spot at SBC Summit 2025 appeared first on European Gaming Industry News.
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