The online gaming giant, Cherry Group, experienced a remarkable 58% surge in income during the third business period, amassing a staggering 899 million Swedish kronor (approximately $98 million). This impressive performance extends their winning streak, with income soaring by 42% to 2.33 billion kronor since the beginning of the year. Their profitability is also reaching new heights – earnings before interest, taxes, depreciation, and amortization (EBITDA) witnessed an astounding 114% increase, reaching 615 million kronor. CEO Gunnar Lind expressed his satisfaction, stating, “The third quarter was characterized by advancements across various areas, particularly the sustained robust performance of online gaming.”
One of their leading brands, ComeOn, is strategically positioned to leverage the recently liberalized Swedish market. They are seeking eight licenses in this promising territory, aiming to fortify their presence in this newly opened landscape. Lind attributes their success to their proactive strategy: “The comprehensive action plan implemented by ComeOn just over a year ago has generated highly favorable outcomes.”
Cherry’s ambitions extend beyond ComeOn, with game development being one of their five core focus areas, spearheaded by Yggdrasil Gaming and Highlight Games. Yggdrasil has been exceptionally successful, achieving a remarkable 66% revenue growth, reaching 195.8 million kronor this year. Their EBITDA is equally impressive, experiencing a robust 21% increase to 49.7 million kronor. Examining the third quarter in isolation, Yggdrasil generated 71.5 million kronor, representing a substantial 62% growth.
Fredrik Elmqvist, the founder and CEO of Yggdrasil, expressed his enthusiasm for their upward trajectory. “Throughout the quarter, we secured agreements with several prominent clients and established our inaugural social gaming collaboration in Asia through a partnership with the Taiwanese operator XSG.” He also made a significant announcement: “Moreover, I am delighted to reveal that following the conclusion of the quarter, we have finalized agreements with ATG and Svenska Spel in Sweden, as well as Veikkaus in Finland.” It appears that Cherry Group and its subsidiaries are experiencing a period of remarkable success, with no indications of slowing down.
