Connect with us
728x90 banner available here

Latest News

Cherry AB Interim Report January–September 2018

Published

on

Cherry AB Interim Report January–September 2018Reading 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

George Miller (Gyorgy Molnar) started his career in content marketing and has started working as an Editor/Content Manager for our company in 2016. George has acquired many experiences when it comes to interviews and newsworthy content becoming Head of Content in 2017. He is responsible for the news being shared on multiple websites that are part of the European Gaming Media Network.

Latest News

S8UL Launches 12-City Esports World Cup Watch Party Tour and Exclusive Creator Experience in Mumbai

Published

on

Reading Time: 2 minutes

In a landmark moment for Indian esports, S8UL Esports, the country’s most celebrated gaming and content organization, has rolled out a nationwide fan and creator engagement campaign for the Esports World Cup (EWC) 2025. The dual initiative includes a 12-city Watch Party Tour across India and a parallel invite-only creator experience at the S8UL Gaming House 2.0 in Mumbai, both designed to bring the EWC excitement closer to home while uniting fans and creators around Team India’s journey on the world stage.

S8UL is the first and only Indian organization selected to be a part of the EWC Foundation’s Club Support Program, placing it among a global elite of teams competing in the tournament. The campaign is powered by iQOO, the official title sponsor.

A Fan-First Nationwide Tour

Bringing the thrill of Riyadh to Indian fans, S8UL is hosting the EWC x S8UL Watch Party tour- a multi-city celebration designed to give fans a front-row seat to S8UL’s EWC journey. The event will be held at one of each city’s top-tier restaurants or leading colleges, transforming the space into a vibrant celebration of esports culture. An open-invite, fan-first celebration of India’s run at the EWC 2025. The watch party will take place in 12 cities, where fans can enjoy the tournament’s action live alongside S8UL creators and community members. The experience will feature live match screenings, meet and greets with top S8UL creators, fun brand activations, gaming engagement zones, food and beverages, and themed photo spots perfect for content creation.

From Delhi to Kolkata, Bangalore to Jaipur and more, fans will experience esports like never before – not just as spectators, but as part of a nationwide movement to back Team India.

S8UL Gaming House Transforms for EWC 2025 While fans gather across India, the S8UL Gaming House 2.0 in Mumbai has been transformed into a private, content-driven creator space throughout the duration of the Esports World Cup. Starting this week, it will host weekly invite-only gatherings for top Indian gaming creators to come together and celebrate S8UL’s EWC matches. The vibe is casual yet collaborative, offering creators a chance to watch the matches as a squad, take part in in-house challenges and brand activations and capture real-time content including vlogs, reactions and social clips. This setup

allows creators to share authentic moments from real-time reactions to behind-the-scenes collaborations with millions of fans online, amplifying India’s EWC presence far beyond the venue.

“We’ve always believed in building the Indian esports community together – fans, creators, players, and partners,” said Animesh Agarwal, Co-Founder of S8UL. “The Esports World Cup is one of the biggest moments in global esports, and through this campaign, we’re making sure the whole country is part of the celebration. Whether you’re cheering from a college in Bangalore or vibing with creators in Mumbai, this is our time to unite and show the world the strength of Indian esports.”

EWC 2025 marks a defining moment for India on the global stage. With this campaign, S8UL invites every fan, every creator, and every supporter to be part of the journey. This dream was built together, now it’s time to cheer together as one united force for Indian esports.

The post S8UL Launches 12-City Esports World Cup Watch Party Tour and Exclusive Creator Experience in Mumbai appeared first on European Gaming Industry News.

Continue Reading

Latest News

Betting That Works: DATA.BET’s Performance-First Approach to Sports Expansion

Published

on

Reading Time: 4 minutes

 

We sat down with Otto Bonning, Head of Sales at DATA.BET, to understand the vision behind their expansion from esports dominance into sports, and what this evolution means for operators worldwide.

 

Why did DATA.BET choose to expand from esports into traditional sports?

Otto: It’s a natural evolution for us. Over the past three years, we’ve built exceptional performance in esports for our clients, and now we’re ready to bring this expertise to the broader market. We have around 150 trading professionals, time-tested models, and proven capabilities – it only makes sense to expand our product offering. This isn’t just an add-on, it’s the next revolution in DATA.BET’s history.

 

What market gaps led you to develop a unified solution for these betting verticals?

Otto: The market lacks robust sportsbook solutions. Most operators face a choice: either sign up for a complete platform that includes everything from casino to payments, or piece together multiple providers. We identified a massive opportunity for our high-quality, plug-and-play solution that works seamlessly whether you’re a betting operator or a platform provider.

To meet this market demand and ease the integration journey, the DATA.BET team developed a Single Page Application (SPA or iFrame). Its key strengths lie in its flexibility, deep customization options – both visually and technically – and seamless integration.

For casino operators, it’s a simple solution to add quality betting without creating additional pain. It is as simple as adding a new game provider and can be completed in under a month. For betting operators and platform providers, it’s not only an addition of high-quality traditional sports, but also premium esports coverage that will help them earn more. This is a convenient option because they can connect our Odds Feed via API, or our SPA (iFrame) to their platform.

We’re offering a high-quality, personalized solution that really works for both operators and platforms. The achievements that made us a top esports provider – performance, reliability, and ease of integration – now apply to our complete sportsbook offering.

 

How does DATA.BET differ from competitors when handling both esports and traditional sports?

Otto: Three key differentiators set us apart. First, our technical foundation is built by developers who excel at creating technically complex solutions that are actually easy to integrate and scale for clients. No headaches, just steady performance day after day.

Second, we don’t just provide odds – we create them. Our in-house trading team combined with our data scientists and sophisticated algorithms, delivers consistent, high-performance margins across all sports. We work with official data sources, and our models are continuously tested and improved. This ensures we provide the best coefficients and quality feed.

Third, our betting product suite is comprehensive. Just like with esports, we’re bringing Bet Builder, Widgets, Video Streaming, and full functionality to sports and virtual. It’s not about having separate systems – it’s one unified, high-performance solution powered by our technical expertise, official data, and data science capabilities.

 

What problems do clients typically face before switching to DATA.BET?

Otto: Integration nightmares are, unfortunately, common in our industry. What we wanted to do was make one product and make it exceptionally high-quality from a technical standpoint, so that integration becomes seamless.

If you’re a casino operator, you can be up and running within 10 days. For B2B integrations, we’ve seen major platforms go live in just five weeks.

Our partnership with NuBet is a great example – they chose us for our broad market coverage, fast and seamless user experience, and a strong feature set, including Bet Builder, Video Streaming, and detailed in-game Widgets. The integration was smooth and collaborative, with both teams working hands-on. As NuBet noted, feature delivery has been rapid, feedback is valued, and issues are resolved promptly, without being left hanging.

The key to success is our integration team – they work around the clock and take an extremely bespoke approach to each client. When our partners are ambitious to go live quickly, we make it happen. The speed ultimately depends on the their readiness, but we remove all the traditional technical barriers from our side.

 

How do you adapt your solutions for different markets, particularly emerging regions like LatAm?

Otto: Regional differences are significant, from sports preferences to regulatory requirements. Take Brazil, for example. It’s heavily football-focused, which is why we’re enhancing our football content and securing official data rights for major leagues, including the Brazilian Série A  and other Latin American competitions.

But here’s what’s interesting: esports ranks among the top three most popular betting categories in Brazil. Since we know how to do esports, combining that with top-tier football coverage creates a perfect solution for the LatAm market. We’re not just translating our product – we’re building it specifically for these markets.

 

What’s your approach for operators using separate providers for esports and sports?

Otto: We focus on demonstrating superior performance in specific areas. While we respect operators’ existing relationships with other providers, we can showcase our strengths in particular sports and esports disciplines. We’re exceptional at basketball and table tennis, for instance. Our models in these areas consistently outperform the competitors’.

The key is showing operators that consolidating with DATA.BET simplifies their operations and improves its margins and player experience. We work within the frameworks of our partnerships while finding ways to add value that others can’t match.

What’s particularly valuable is feedback from clients who initially were signed for esports, then also expanded to sports, and saw better performance than they had with their previous supplier.

 

What betting trends are you most excited about, and how is DATA.BET preparing?

Otto: The continued growth of live betting is transforming our industry. Players demand more engaging, responsive experiences – everything needs to happen in real-time. This is where our esports heritage gives us an advantage. Esports taught us that speed, accuracy, and synchronization are non-negotiable.

We’re building products where odds and game statistics visualization are timely matched. There’s no tolerance for a broken streaming feed with 30-second delays while odds update faster – that ruins the betting experience. Our unified approach ensures everything works together seamlessly. Widgets, Video Streaming capabilities, extensive markets – all synchronized and working as one cohesive system.

 

What’s the core message you want operators to understand about DATA.BET?

Otto: Simple: Betting that works. Stress-free, hassle-free, high-performance.

We deliver a fully functional, customizable sportsbook solution that adapts to your needs. Want to launch a new brand? Easy. Expanding to new markets? We have templates ready. Need to change your entire look and feel? It’s just a few clicks.

Our promise is steady performance, day after day, with all the tools you need to succeed. In an industry full of complexity, we’re the solution that works.

DATA.BET continues to expand its presence globally, with particular focus on emerging markets in Europe and Latin America. Their unified sportsbook solution represents a significant evolution from their esports roots, bringing the same performance-driven approach to traditional sports betting.

The post Betting That Works: DATA.BET’s Performance-First Approach to Sports Expansion appeared first on European Gaming Industry News.

Continue Reading

Latest News

7777 gaming builds on Italian certification with Octavian Lab deal

Published

on

Reading Time: 2 minutes

7777 gaming has taken a significant step in its international expansion strategy by partnering with Octavian Lab. This strategic alliance reinforces the company’s commitment to establishing a strong presence in regulated European markets and marks a key milestone in its international growth plans. Through this collaboration, 7777 gaming’s certified portfolio of innovative online casino titles will be seamlessly integrated into Octavian Lab’s advanced aggregator called Hub Casino, making the games accessible to a wide network of licensed Italian operators.

“Partnering with Octavian Lab is a landmark moment for 7777 gaming,” said Elena Shaterova, Chief Commercial Officer at 7777 gaming. “Italy is a market we view as both strategic and full of potential. Through Octavian Lab’s Hub Casino, our certified games will reach a broad audience of experienced operators and players. We are confident that our titles will bring fresh energy, variety, and innovation to the Italian iGaming landscape.”

The integration includes 7777 gaming’s newly certified Italian portfolio, which features standout titles such as Crazy 100 Bucks, Cash 100, Thracian Treasures and Devil’s Deal Soul for Sale.

Each title is built for strong player engagement, offering features like bonus games, free spins, WILD symbols, multipliers, and buy-bonus options – meeting the demand of Italian players for variety and excitement.

“We are delighted to welcome 7777 gaming to our Hub Casino,” said Andres Galan Chillon, Senior Partnerships Manager at Octavian Lab. “Their portfolio brings fresh and exciting content that aligns perfectly with our commitment to providing innovative, high-quality gaming experiences for operators and players in Italy. We look forward to a successful partnership that drives growth and delivers real value to the Italian iGaming market.”

7777 gaming is an innovative online casino games provider, committed to delivering unique, engaging content that meets the highest standards of compliance and player satisfaction. With a growing presence across Europe, Africa, and Latin America and a strong focus on regulated markets like Italy – the company builds long-term partnerships that drive sustainable growth and deliver localized, high-performing gaming experiences. By combining

regulatory trust, creative excellence, and a passion for innovation, 7777 gaming continues to strengthen its position as a trusted partner in the global iGaming industry.

About 7777 gaming:

7777 gaming is an innovative and data-driven B2B igaming provider, founded in 2020 with the mission to revolutionize and challenge the status quo in the industry by offering 360-degree platform, state-of-the-art online casino games, iLottery, Jackpot, and marketing solutions, draw-based games, scratch cards, and much more.

The product is built by a dedicated team of visionaries with over 20 years of experience. The games and the RNG are tested and compliant in several highly regulated jurisdictions worldwide. Besides, the company achieved and maintained ISO 27001 certification. 7777 gaming holds a gambling license in Bulgaria and Romania and an MGA Certificate to provide its online casino games to these markets.

7777 gaming is already partnering with the leading aggregators and platform providers in the igaming industry.

Contact us:

[email protected]

https://www.7777gaming.com

Social Media:

LinkedIn

Youtube

The post 7777 gaming builds on Italian certification with Octavian Lab deal appeared first on European Gaming Industry News.

Continue Reading

Trending

EEGaming.org is part of HIPTHER, parent brand of various prominent news outlets and international conferences. These platforms and events span a wide range of industries, including Entertainment, Technology, Gaming and Gambling, Blockchain, Artificial Intelligence, Fintech, Quantum Technology, Legal Cannabis, Health and Lifestyle, VR/AR, eSports, and several others. This indicates that EEGaming.org is part of a larger network that focuses on a diverse array of sectors, particularly those related to cutting-edge technology and modern lifestyle trends.

Contact us: [email protected]

Editorial / PR Submissions: [email protected]

Copyright © 2015 - 2025 HIPTHER. All Rights Reserved. Registered in Romania under Proshirt SRL, Company number: 2134306, EU VAT ID: RO21343605. Office address: Blvd. 1 Decembrie 1918 nr.5, Targu Mures, Romania

We are constantly showing banners about important news regarding events and product launches. Please turn AdBlock off in order to see these areas.