The Swedish gaming company Cherry AB revealed that it has appointed a new Chief Executive Officer right before it published its full-year results for the fiscal 2016.
The company’s Board of Directors has decided to put Anders Holmgren on top of the company. Mr. Holmgren has previous experience at the position of acting Chief Executive Officer, and will now immediately become the ordinary CEO of Cherry AB. He is to resign as a member of the Board of Directors and will take over the boss’ position from Fredrik Burvall. According to the press release issued by the gaming operator, Burvall is leaving the company due to family reasons, but will remain within Cherry until the summer of 2017.
On the other hand, Cherry AB revealed its fourth quarter and full-year results for the fiscal 2016. As officially announced by the company, its revenue grew by the massive 201% to SEK 519.4 million over the last three months of 2016. The operator’s profits also greatly improved over the period, with Cherry’s earnings before interest, taxes, depreciation and amortisation (EBITDA) rising by 353% year-on-year to SEK 106.3 million.
The revenue generated from the online gaming operations of the company over the fourth fiscal quarter of 2016 increased by 51%. If the acquisition of the ComeOn brand is also taken into account, the overall revenue grew by 294%, reaching SEK 87.8 million. The number of Cherry’s active customers also increased significantly, amounting to 1,798,546 over the last three months of 2016.
In addition, Cherry AB revealed more information about its divisions’ performance over the last fiscal quarter of 2016. The Swedish gaming operator explained that the revenue of both its Yggdrasil Gaming and Game Lounge affiliates increased over the period. Ygdrassil Gaming’s revenue rose by 207%, while its EBITDA increased by 171%, reaching SEK 13.2 million. The revenue of the Game Lounge brand, on the other hand, increased by 138%, while its EBITDA rose by 37% to SEK 5.3 million. The revenue generated by the Restaurant Casino was also strong, reaching SEK 42.8 million, while its EBITDA amounted to SEK 4.9 million over the period.
When it comes to the full-year performance of Cherry AB, the company itself revealed that its executives team was very satisfied by the consistent revenue growth of 109% to SEK 1,102.4 million. In comparison to the last year’s result, the earnings before interest, taxes, depreciation and amortisation (EBITDA) also rose to a record high of 393% and reached SEK 177.7 million. The profit after tax amounted to SEK 635.2 million.
The newly-appointed Chief Executive Officer Anders Holmgren commented on the performance of Cherry over the last three months of the year, as well as over the full-year period from January 1st to December 31st, 2016. He explained that it was the diversity of businesses owned by Cherry which made the company’s performance so successful over both of the aforementioned periods. According to Mr. Holmgren, the fact that the Swedish gaming operator held five different businesses considerably increased its influence over the gaming industry as a whole, which on the other hand allowed the company to generate faster growth.
- Author
Olivia Cole
