Swedish gambling group Cherry has recorded a 15% year-on-year growth in revenue for the third quarter of 2013, an increase it has put down to the success of its online gaming operations.
The firm posted revenue of SEK69.9 million (€8 million/$10.8 million) for the quarter, up from SEK61 million in the corresponding period last year.
Online gaming contributed substantially to the increase, with revenue having grown year-on-year from SEK26.7 million to SEK35.1 million.
The company’s land-based casino revenue only grew slightly from SEK34.4 million to SEK34.6 million, an increase of 1%.
Earnings before interest, tax, depreciation and amortisation (EBITDA) during the latest quarter stood at SEK-4.4 million, in comparison to SEK4.2 million in the third quarter of 2012.
The latest figures place the firm’s revenue for the first nine months of 2013 at SEK191.3 million, a 15% rise on the SEK166.7 million recorded in the same period last year.
While online gaming grew by 32% during the nine months up to September 30, 2013, EBITDA amounted to SEK-13.3 million compared to the SEK9.9 million achieved in the first nine months of 2012.
“Online gaming is again Cherry’s largest business area measured by turnover,” Cherry’s chief executive officer, Emil Sunvisson, said.
“High marketing costs have negatively impacted profit, but have also resulted in increased growth. Growth is a prerequisite for future profitability, as economies of scale with our current structure are significant.”
