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Cherry year-end report 2018
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An eventful year with continued good development in the final quarter
FOURTH QUARTER
• Consolidated revenue increased by 49 percent to MSEK 904 (608), with organic revenue growth amounting to 41 percentage points. Corporate acquisitions contributed 0.5 percentage point and currency 7.5 percentage points.
• Profitability improved and EBITDA increased by 40 percent to MSEK 198 (141) and the EBITDA margin was 22 percent (23).
• Profit for the period amounted to MSEK 120 (18).
• Earnings per share before and after dilution amounted to SEK 1.14 (0.05) and SEK 1.14 (0.05) respectively.
• European Entertainment Intressenter BidCo AB (“EE Intressenter”), a company jointly controlled by a consortium of Bridgepoint and major shareholders in Cherry AB, announced a takeover bid for SEK 87 in cash per Class A and B share in Cherry AB. The independent bid committee for Cherry recommended that shareholders accept the public offer.
• Companies in the Online Gaming business area secured a total of eight Swedish gaming licenses in December.
• An Extraordinary General Meeting in November elected Rolf Åkerlind as a new member of the Board and approved the decision to acquire the remaining five percent of the shares in Game Lounge Sweden AB.
FULL-YEAR
• Consolidated revenue increased by 44 percent to MSEK 3,236 (2,252), of which organic growth amounted to 3 percent. Corporate acquisitions contributed 1 percentage point and currency 8 percentage points.
• Profitability improved and EBITDA increased by 89 percent to MSEK 813 (429) and the EBITDA margin was 25 percent (19).
• Profit for the period amounted to MSEK 487 (110). Profit was affected positively by an item affecting comparability of MSEK 50 regarding the reassessment of the value of Highlight Games.
• Earnings per share before and after dilution amounted to SEK 4.45 (0.53) and SEK 4.44 (0.53) respectively.
• As for the 2017 financial year, Cherry AB’s Board of Directors proposes to the Annual General Meeting that no dividend be paid for the 2018 financial year.
EVENTS AFTER THE END OF THE PERIOD
• On 12 February, EE intressenter announced that it controls approximately 98.2 percent of the total number of shares in Cherry AB (publ) after the expiry of the final acceptance period, and that EE Intressenter intends to initiate a compulsory acquisition procedure and to promote a delisting of the shares of series B in Cherry AB from Nasdaq Stockholm.
• On 12 February, Cherry announced the initiation of early redemption of senior secured callable bonds. In connection with the redemption, the bonds will be delisted from Nasdaq Stockholm.
Comments by the CEO
An excellent year for all companies in the Cherry Group
Cherry’s development in 2018 can be summarized with one word: excellent. On almost all measurements, our operations delivered in line with our expectations. Financially, we have performed well with total growth of 44 percent, and full-year revenue amounting to MSEK 3,236 (2,252) with an EBITDA margin of 25 percent (19).
For a significant part of the year, we worked to prepare for the re-regulation of the Swedish gaming market. We were involved right from the inquiry phase prior to the legislation being drafted and have participated in issues on which we have specialist knowledge on an ongoing basis. We are satisfied with the framework, which should contribute to a high level of channelization, which is important for the long-term perspective that our market needs to be able to develop in a way that assures all stakeholders the security they need.
It is reasonable that gaming companies be taxed and, to some extent, controlled when it comes to marketing, but the legislators must be aware that this is an industry in which customers are aware of their options and can therefore quickly shift their preferences. This can result in tax revenue and preventive actions from game addiction being lost. The more laws there are and the more detailed the regulations, the greater the risk that companies position themselves outside the licensing system, with the effect that everyone loses.
We now have only a few weeks’ experience of the Swedish regulations and it is too early yet to have a clear idea of how development is progressing for Cherry and the rest of the industry. Our experience of similar changes in other countries is that the companies and brands that cope best are those with a clear digital strategy, that are at the forefront in technology and their customer relationships, and are led by entrepreneurs. This is the core of Cherry’s business model and the companies within our Group hold strong positions, are strongly focused on what they do and are quick to grasp opportunities.
Marketing investments are often in focus among investors. During the quarter, business area Online Gaming accounted for the largest share, MSEK 253, and we can see that these investments continued to yield good returns. The business area’s revenue for the fourth quarter rose by 48 percent, to MSEK 722 (485) and the EBITDA result amounted to MSEK 141 (92). During the quarter, expenses affecting the comparison between periods were incurred, relating to doubtful receivables and gaming tax of MSEK 45.2, and impacting earnings. Underlying EBITDA amounted to MSEK 186.7 and the underlying EBITDA margin was 25.9 percent.
A few days ago, the ICE trade fair closed. This is one of the industry’s foremost meeting places, and Yggdrasil once again held a prominent position there as the leading game developer. Its attendance at ICE is the company’s largest initiative in presenting itself and its new games. For the third consecutive year, Yggdrasil received the industry’s “Innovator of the year” award.
The other company in business area Game Development, Highlight Games, has now launched its virtual football game in Italy together with some of the country’s largest gaming operators, Eurobet and Sisal. We believe that this game can quickly capture market share in one of Europe’s foremost football nations.
On 18 December 2018, European Entertainment Intressenter BidCo AB (“EE Intressenter”), announced a public cash offer of SEK 87 per share to Cherry AB shareholders. EE Intressenter is a company jointly controlled by a consortium consisting of Bridgepoint Advisers Limited, acting as manager for and on behalf of, Bridgepoint Europe VI Fund, major shareholders in Cherry AB and others.
The Board of Directors’ independent bid committee recommended that Cherry’s shareholders accept the bid from EE Intressenter. In its assessment, the recommendation took into account factors including the thorough analysis performed by the company’s financial advisers Carnegie. Key components of the bid committee’s assessment were the consideration of the bid premium over an extended time frame, the major shareholders’ decision to participate and changed market environments for listed gaming companies in Sweden.
On 25 January 2019, EE Intressenter announced that the offering was accepted by shareholders holding 45,425,416 shares, corresponding to approximately 43.0 percent of the shares in Cherry. The shares submitted in the offering, together with the shares controlled by the Consortium, totalled 4,988,000 Class A shares and 90,537,784 Class B shares in Cherry, corresponding to approximately 90.4 percent of the total number of shares and 93.3 percent of the total number of votes in Cherry AB. EE Intressenter extended the acceptance deadline to 8 February and announced on 12 February that it had secured approximately 98.2 percent of the total number of shares in Cherry. EE Intressenter intends to initiate a compulsory acquisition procedure regarding the shares in Cherry that were not tendered in the offer and to promote a delisting of the shares of series B in Cherry from Nasdaq Stockholm, the operations will continue in a private setting.
In a way, Cherry can be said to be Sweden’s oldest gaming company. The Group’s roots date back to 1963, when Bill Lindwall and Rolf Lundström initiated gaming operations under the name Restaurang AB Rouletter. In 1968, cooperation was initiated with AB Roulett konsult & Spelautomater, which had been founded Per Hamberg and Lars Kling. In 1972, the name of the company was changed to Cherry, and the cherry symbol began to be used as a trademark. The period as a listed company began in 1997, with the company’s listing on the SBI list, and after the current planned delisting of the company’s series B shares from Nasdaq Stockholm, Mid Cap list, to continue the business in a private setting.
The foundation of Cherry’s development has been, and remains, to have a clear focus on entrepreneurial spirit and innovation, as well as offering the best workplace and development opportunities for all of our employees. We will now work with partly new owners to implement the existing strategy, while, at the same time, being able to implement efficient investments to safeguard Cherry’s market position.
I would like to thank all of the shareholders, employees, partners and other stakeholders who have participated in Cherry’s journey thus far. I am convinced that Cherry and its Group companies will remain significant players in the gaming and entertainment industry for many years to come and I look forward to following developments.
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 in related business areas and geographic markets within Europe and beyond.
The Group focuses on generating value for shareholders by participating actively 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 on 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.
Source: Latest News on European Gaming Media Network
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: Cherry year-end report 2018
This year has been an exciting journey for SmartSoft. Both internally and externally, the company has undergone significant transformation. SmartSoft continues to pursue ambitious goals driven by teamwork and unity. The company fosters a culture of collaboration, where team members and partners support one another, share objectives, and work towards common interests. This synergy is powered by a diverse group of individuals, united by a shared mission to redefine the iGaming industry.
As a result, the number of unique customers grew by an impressive 75%—a remarkable achievement.
So, how did SmartSoft achieve such success?
Team Expansion and User Growth
SmartSoft made great progress this year by adding 40 new team members, strengthening its skills and knowledge across different areas. This expansion helped create a more dynamic work environment and played a key role in improving the company’s overall performance. As a result, SmartSoft saw an impressive 75% growth in unique users compared to last year. This increase in users highlights the company’s growing global reach, its ability to attract a wide audience, and its commitment to offering exciting and innovative gaming experiences.
New Markets and Partnerships
This year, SmartSoft made remarkable strides by entering 25 new markets, significantly enhancing its global footprint. The company also established several strategic partnerships with leading operators and platforms, including Betfair, Betway, Stoiximan, Betnacional, LottoStar, Betmexico and Qtech. These collaborations are expected to unlock new opportunities and open doors to fresh audiences worldwide. SmartSoft is excited about the direction these partnerships will take, and more details about these ventures will be shared soon.
JetX’s Unstoppable Rise
Also, JetX as SmartSoft’s flagship and pioneer crash game proved that its actually top game not only for SmartSoft but in the whole iGaming industry – its users rose by 80% which is a great number to imagine.
If there’s anyone still unfamiliar with JetX, it was the pioneer crash game developed by SmartSoft. Since its launch, JetX achieved extraordinary success, becoming a favorite among players and partners alike. The game is always evolving with regular updates, as the SmartSoft team constantly works to make it even better. Its innovative gameplay, which challenges players to cash out at just the right moment, captivated audiences worldwide. Breaking records and redefining expectations. The continued rise of JetX signifies the company’s ongoing commitment to offering exciting, innovative, and highly engaging products to its users.
Performance of Top Games
SmartSoft’s portfolio of top games saw incredible engagement, with a great increase in user participation across its leading titles, including Balloon, Mine Island, HelicopterX, PlinkoX, and FootballX. This phenomenal growth demonstrates that the company’s gaming offerings are not just popular but are setting industry benchmarks for user interaction and satisfaction. It’s clear that SmartSoft’s games are playing a key role in redefining the entertainment experience for players worldwide.
Exciting New Games
This year, SmartSoft introduced a total of 18 new games, including three games and slot games, all designed to offer players a unique and immersive experience. Some of the most anticipated releases included:
- 4 Bonuses Bonanza – Plinko Spin
- Mad Slot
- Rodeo X
- Dracula’s Fortune
- Jungle Sisters Deluxe
- Samba da Deusa
These new games have attracted more than 2 million new users, underscoring their appeal and the growing demand for SmartSoft’s innovative approach to gaming. The diverse range of titles further strengthens SmartSoft’s position as a leader in the gaming industry, offering games tailored to every interest.
Partnerships and Sponsorships
SmartSoft strengthened its position in the global market by extending its partnership with the Argentine National Team. This collaboration now includes SmartSoft becoming the Official Crash Game Partner. Sponsoring the Argentine national team and being a member of the World Champions Family is proof of SmartSoft’s commitment. Through these initiatives, company aims to spread the spirit of football, which brings people together and fosters a sense of community. Through this renewal in 2024 with the Argentine Football Association and the Argentine National Team, SmartSoft continued on a journey that combined passion and excellence, where the worlds of business and gaming converged with the magic of Argentine football. The company expressed delight in continuing as the gaming partner in Europe for the Argentine National Team and voiced confidence that this collaboration would drive both the company and its games to new horizons. Additionally, plans were announced for new content and marketing actions featuring the stars of the national team.
Memorable Moments and Extraordinary Partnerships
2024 was a year of remarkable achievements and unforgettable experiences for SmartSoft. The company participated in 8 major industry exhibitions, earning prestigious nominations such as Best Innovator, Best Interactive Experience, and Best Crash Game. Beyond the awards, SmartSoft cemented its reputation for innovation and connection through extraordinary events and partnerships. The Legend Series brought partners face-to-face with football legends like Zanetti, Palacio, and Milito, while an exclusive Champions League experience in London with José Mourinho left lasting impressions. In Lisbon, partners enjoyed the privilege of meeting Javier Mascherano at the SmartSoft booth and engaging in personal conversations during a special dinner. The collaboration with the Argentine national football team reached new heights with an in-depth interview with Lionel Scaloni, offering an insightful glimpse into the team’s journey. Further strengthening its connection to the sports world, SmartSoft proudly partnered with Georgian football legend Shota Arveladze, strengthening its ties to the sports world and bringing people even closer together.
Additionally, the launch of the Partners’ Club during a three-day celebration in Georgia showcased the company’s commitment to fostering collaboration and shared success.
Licensing Achievements
SmartSoft reached several important licensing milestones in 2024, underscoring its commitment to expanding its global operations while adhering to regulatory standards. The company’s Greek license, originally obtained in 2023, became fully operational this year, allowing SmartSoft to expand its reach in the European market. The company also achieved authorizations in Peru and obtained compliance certification in South Africa, further strengthening its position in these growing markets.
Certifications
SmartSoft earned 79 new certifications in 2024, an impressive achievement that reflects the company’s dedication to maintaining the highest standards in the industry. These certifications cover a wide range of areas, reinforcing SmartSoft’s commitment to delivering top-tier products that meet international quality and regulatory standards.
Looking Forward
The year 2024 was one of remarkable growth, innovation, and unforgettable achievements for SmartSoft. As the company continues to build on this momentum, it remains committed to delivering exceptional entertainment experiences, expanding into new markets, and redefining the gaming landscape. SmartSoft is excited about what the future holds and is looking forward to further strengthening its position as an industry leader in the years to come.
As we step into the new year, SmartSoft continues to soar, staying true to its motto: Keep Flying Even Higher.
The post SmartSoft’s 2024 Story – Year of Growth and Success appeared first on European Gaming Industry News.
Latest News
Prague Gaming & TECH Summit 2025: The Must-Attend Event of the Year for Gaming and Tech Enthusiasts
The Prague Gaming & TECH Summit 2025, happening on 25–26 March, is shaping up to be one of the most anticipated events in the gaming and tech calendar. Set in the heart of Europe, this boutique-style conference is renowned for delivering cutting-edge insights, fostering meaningful networking, and tackling the industry’s most pressing challenges.
Key Highlights of the 2025 Agenda
This year, the summit promises a robust agenda that combines the latest in innovation with actionable strategies for growth. Attendees can look forward to:
- AI and Blockchain Innovations: Explore how artificial intelligence and blockchain are transforming operations, enhancing security, and redefining user experiences.
- Regulatory Challenges and Compliance: Stay ahead of the curve with expert insights into navigating Europe’s evolving regulatory landscape.
- Fintech Advancements: Learn about the latest payment solutions and technologies driving seamless transactions and user satisfaction.
- Sustainability & ESG Initiatives: Discover how the gaming and tech industries are embracing sustainability and responsible business practices.
Global Reach Without Leaving Europe
One of the standout features of this year’s summit is the dedicated panels on Latin America and North America. These sessions bring insights from two of the most dynamic gaming markets directly to European attendees. No need for long-haul flights—gain valuable knowledge from industry leaders as they discuss trends, opportunities, and challenges in these regions.
Networking in the Golden City
Prague’s status as a vibrant business hub and cultural gem makes it the perfect backdrop for this gathering. The event offers ample networking opportunities, from structured meetups to informal conversations, ensuring every attendee can connect with peers, industry leaders, and potential partners.
Why Attend the Prague Gaming & TECH Summit?
- Exclusive Access to Thought Leaders: Hear from speakers shaping the future of gaming and tech.
- Tailored Content: Topics designed to address regional and global industry needs.
- Hands-On Workshops: Gain practical insights to tackle real-world challenges.
- Boutique Atmosphere: A focus on quality over quantity ensures meaningful engagement.
The Prague Gaming & TECH Summit is more than just a conference—it’s an opportunity to be part of the conversations that will shape the future of gaming and technology.
👉 Register now and join us in the Golden City this March to be part of the innovation.
The post Prague Gaming & TECH Summit 2025: The Must-Attend Event of the Year for Gaming and Tech Enthusiasts appeared first on European Gaming Industry News.
NBA superstar Tristan Thompson is the latest big name to partner with Sportsbet.io, the world’s favorite crypto-first sports betting site, as its newest global ambassador.
Thompson, a Cleveland Cavaliers center and 2016 NBA Championship winner, will bring his star power and passion for cryptocurrency to the Sportsbet.io community for the next two years.
The Canadian basketball legend will be sharing his views on the latest action for Sportsbet.io, where fans will have the opportunity to take part in some exclusive promotions.
Tristan Thompson, Sportsbet.io ambassador, said: “Sportsbet.io brings together my two biggest passions: sports and cryptocurrency. I’ve been following the crypto sector for some time now and have seen how transformative it can be. There’s no better place to combine that with my love of sports than Sportsbet.io.”
Shane Anderson, Director Partnership, Content and Brand, Yolo Entertainment, the operator of Sportsbet.io, added: “We’d like to give a huge Sportsbet.io welcome to Tristan, an elite athlete whose passion for both basketball and cryptocurrency makes him a perfect match for us. We’re thrilled to have him on the team, and we already have some exciting plans in the works. Watch this space.”
Thompson’s crypto credentials are already well established; he’s been a vocal supporter of Bitcoin, and recently celebrated as it reached a new all-time high in price.
He will be providing weekly betting tips on a range of sports, including NFL, MLB, European soccer, tennis, golf, UFC and boxing.
The partnership with Thompson marks another exciting new chapter for Sportsbet.io, which has earned a reputation for both its innovative approach to gaming, and its star-studded line-up of ambassadors, including cricket legend Brett Lee, Kenyan rapper King Kaka and many more.
Sportsbet.io is also an official partner of LALIGA and Newcastle United.
The post NBA star Tristan Thompson signs for Sportsbet.io appeared first on European Gaming Industry News.
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Prague Gaming & TECH Summit 2025: The Must-Attend Event of the Year for Gaming and Tech Enthusiasts
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