Bli medlem
Bli medlem

Du är här

2016-02-18

Cherry: End Year Report 2015, 1 January - 31 December

Highlights

Fourth quarter: 72 percent growth in revenue and a positive EBITDA of
MSEK 23.4

· Group revenue increased by 72 percent to MSEK 172.5 (100.2).
Online makes up 74 percent (58) of the group revenue.

· Profitability improved considerably and EBITDA amounted to MSEK
23.4 (-6.5). EBIT amounted to MSEK 16.4 (-10.6).

· The result after tax was MSEK 12.9 (-15.3), equivalent to SEK 0.63
(-1.13) per share after dilution and minority interests.

· Online Gaming grew by 109 percent and EBITDA amounted to MSEK 15.4
(-4.3).

· Yggdrasil Gaming grew by 696 percent and EBITDA amounted to MSEK
4.9 (-1.4). Yggdrasil has been awarded a UK operator licence during
the quarter and the first customers are expected to go live by the
end of Q1 2016.

· Restaurant Casino increased turnover by 5 percent and EBITDA
amounted to MSEK 4.9 (5.0).

· In October, Cherry acquired an additional 4 percent of the shares
in the Malta-based company Almor Holding Limited - a leading online
casino in German speaking markets. Cherry now owns 75 percent of
Almor.

· In December, Cherry acquired 100 percent of the shares in Malta
based Moorgate Media Ltd. The company owns affiliate agreements
related to the Web Resorts business. Cherry also acquired 100 percent
of the domain, customer database and website Norgespill.com. The
acquisitions are expected to increase Online Gaming's EBITDA by MEUR
1.5 per year and the total purchase price amounted to MEUR 4.75.

Full year 2015: Strong revenue and profit growth within all business
areas

· Group turnover increased by 56 percent compared to the previous
year and amounted to MSEK 528.7 (340.0).

· Online makes up 69 percent (55) of the group revenue.
· Profitability improved considerably and EBITDA amounted to MSEK
35.9 (-17.9). EBIT amounted to MSEK 13.3 (-32.9).

· The result after tax amounted to MSEK 6.4 (-39.3), equivalent to
SEK -0.06 (-2.96) per share after dilution and minority interests.

· Online Gaming grew by 91 percent and EBITDA amounted to MSEK 21.8
(-18.3).

· Yggdrasil Gaming grew by 357 percent and EBITDA amounted to MSEK
5.2 (-4.6).

· Restaurant Casino increased turnover by 9 percent and EBITDA
increased by 13 percent to MSEK 19.4 (17.1).

· During the year Cherry made five acquisitions: Game Lounge, Almor,
the domains and agreements of a leading Finnish affiliate, Moorgate
Media Ltd and NorgesSpill.com.

Important events after the end of the quarter

· In February, Cherry won big at the International Gaming Awards.
Cherry was awarded "Online Gaming Operator of the Year" for the third
year in a row. EuroLotto was named "Lottery Operator of the Year" and
Yggdrasil won "iGaming Software Supplier".

· Cherry has applied to list its shares on Nasdaq Stockholm. The
listing is expected to take place during 2016.

· The board proposes that no dividend is distributed for the
financial year 2015. This is due to the acquisitions and investments
Cherry has made during 2015, in line with the company's strategy, and
which has been reflected by the impressive share price development.
The board intends to continue its growth-focused strategy, by growing
both organically and through acquisitions. This is deemed to be
well-aligned with the company's dividend policy of distributing at
least 50 percent of the net profit.

·
CEO's comments on the fourth quarter

The fourth quarter has provided continued strong growth and a
substantial increase in profits, with Group revenue up a full 72
percent for the period. Cherry's online business continues to grow
extremely quickly and now accounts for 74 percent (58) of the Group's
sales and is expected to continue grow faster than the market. In
February 2016, Cherry received three awards at the industry's largest
online exhibition, the International Gaming Awards, serving as a seal
of quality on our business and strong recognition for the hard work
all our teams have put in this past year.

Cherry's Online Gaming business achieved very strong growth of 109
percent and substantially improved earnings for the period. The
activity on our gaming sites increased substantially and the number
of active players increased by 219 percent compared with Q4 2014.
Online Gaming is well positioned today, with a platform that makes it
possible to quickly and efficiently add new products and skins. In
addition to the licences the Group already holds, Cherry will
continue to look for local licences in markets where we can expect
strong growth, and has therefore initiated an application process to
obtain an operator's licence in the UK. In December, Jonas Wåhlander
was appointed CEO of Cherry Malta, adding enhanced leadership and
experience working with business models involving large numbers of
consumer-focused transactions. The Online Gaming teams were also
proud to receive two awards at the International Gaming Awards, when
we were recognised as the "Online Gaming Operator of the Year" for
the third year in a row, while EuroLotto.com was awarded the "Lottery
Operator of the Year".

In the fourth quarter Yggdrasil achieved continued strong growth, as
revenues increased by 696 percent and the EBITDA margin reached 47
percent. Yggdrasil obtained an operator's licence in the UK during
the period and the

rollout of existing contracts is expected at the end of the first
quarter in 2016. In addition, Yggdrasil has been invited to apply for
a Gibraltar licence. Also during a busy quarter, Yggdrasil delivered
two new quality games (Nirvana and Doubles), which were well received
by both customers and operators. Two new agreements were signed and
in February 2016 an agreement was also signed with the world's
largest operator, Bet365. Yggdrasil has launched new marketing tools
for operators, known as "Boost". Among many of the innovations Boost
brings is a tool in the gaming client that allows operators to run
tournaments between its customers and with other operators. In
February 2016 Yggdrasil was named best "iGaming Software Supplier" at
the International Gaming Awards, which is a stamp of quality for
Yggdrasil's product portfolio. As new operators are deployed, more
games will also be launched for existing customers, growing the
gaming portfolio. Yggdrasil's revenues and profits are expected to
increase even further.

Restaurant Casino continues to deliver solid results. During the
fourth quarter, the business delivered stable growth while earnings
were in line with Q4 2014. Continued training of staff and further
development of the business have led to stronger key figures during
the year and in December, which is considered the best month of the
year, an all-time high turnover per session was delivered. In July
2015 employer contributions for young people were raised, which over
time will have an effect on the industry as well as on Restaurant
Casino's profitability. We will therefore continue to work for an
increase in permitted stakes. After the quarter, Aaron Egfors was
appointed CEO of Restaurant Casino. This will allow us to clarify the
leadership and streamline the Group's organisation; this is also
expected to increase our focus to maintain a large market share.

Cherry is the only private gaming operator to have been invited to
participate in the reference group discussing new gaming legislation
for the Swedish market. The latest update is that new Swedish gaming
legislation is expected to be in place by July 2018. Cherry welcomes
a gaming market that is open for everyone with transparent and
responsible stakeholders, and we also want to create more jobs in
Sweden and compete on fair terms.

All in all, Cherry is very well positioned to continue to grow faster
than the market, both organically and through acquisitions, focusing
on rapidly increasing profitability. We now look forward to continue
to spread the joy of playing, both online and at the pub!

/Fredrik Burvall, CEO

Nomination committee
In accordance with the decision at Cherry's annual general meeting
held on 12 May, 2015, the members of the Nomination Committee for AGM
2016 have been appointed.

The following nomination committee has been formed based on ownership
at 30 September 2015, and consists of John Wattin (appointed by the
Hamberg family), Morten Klein (appointed by Klein Group AS), Pontus
Lindwall (appointed by the Kling family) and Rolf Åkerlind (Chairman
Cherry AB). The nomination committee together represents 45.2 percent
of the votes and 33.6 percent of the shares in Cherry AB.

The Nomination Committee shall, for the next AGM in 2016, submit
proposals on the number of directors to be elected, the directors'
remunerations, the composition of the Board of directors, a Chairman
of the board, auditor(s), remuneration for the auditor (-s) and the
Chairman at the AGM. Furthermore, the Nomination Committee shall
submit a proposal on a new instruction for the Nomination Committee
at the next AGM.

Shareholders who wish to contact the nomination committee can do so by
e-mail to valberedningen@cherry.se or by mail to Cherry AB,
Nomination committee, Blekholmstorget 30, 111 64 Stockholm.

Annual General Meeting
The Cherry AB (PLC) Annual General Meeting will be held in Stockholm
on Thursday May 12, 2016, at CET 16:00. Shareholders who wish to
attend the meeting must both be recorded in the register kept by
Euroclear Sweden AB share database on the 6 of May 2016 and notify
their intention to attend the meeting no later than on May 10, 2016.
Notice of attendance at the meeting must be submitted in writing to
the company at Blekholmstorget 30, 111 64 Stockholm, by telephone +46
8-514 969 48 or by email: alexander.pettersson@cherry.se

Annual Report
The Annual Report for 2015 will be published at the latest on 20 April
2016 on the company's website www.cherry.se and on the website of
Aktietorget, www.aktietorget.se.

For further information please see the full End Year Report 2015.

http://cherry.se/en/financial-reports/

Translation
This is a translation of the Swedish original.

Stockholm, February 18, 2016
Fredrik Burvall
CEO Cherry AB (PLC)
Telephone +46 8-514 969 52, +46 709 279 632, fredrik.burvall@cherry.se

-----------------------------------------------------------
http://news.cision.com/cherry/r/end-year-report-2015--1-january---31-dec...
http://mb.cision.com/Main/6923/9916567/478698.pdf

Författare ATORG

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.