News
Cherry’s year-end report for 2017 – A year of good growth and investments in innovation
Reading Time: 6 minutes
FOURTH QUARTER 2017
• Group revenue increased by 17% year-on-year to MSEK 607 (519), with organic revenue growth amounting to 16% (41).
• Profitability improved and EBITDA increased by 37% to MSEK 141 (103) and the EBITDA margin was 23.3% (20.5).
• Profit for the period amounted to MSEK 18 (68).
• Earnings per share before and after dilution amounted to SEK 0.05 (0.72) and SEK 0.05 (0.71) respectively.
• The switch of listing from AktieTorget to Nasdaq Stockholm’s main list was completed and, effective from 18 October, Cherry’s B shares have been traded on the Mid Cap list.
• Change of management in ComeOn was implemented on 26 October.
• On 1 November, Cherry adjusted its full-year forecast.
• Acquisition of an additional 12.5% of the shares in Highlight Games. Cherry now owns 37.5% of the shares in that company.
• Acquisition of the majority of the shares outstanding in Game Lounge. Cherry owns 95% of the shares effective from 1 January 2018.
FULL-YEAR 2017
• Group revenue increased by 104% to MSEK 2,252 (1,102), with organic revenue growth amounting to 27% (32).
• Profitability improved and EBITDA increased by 146% to MSEK 429 (174) and the EBITDA margin was 19.0% (15.8).
• Profit for the period amounted to MSEK 110 (125).
• Earnings per share before and after dilution amounted to SEK 0.53 (1.28) and SEK 0.53 (1.27) respectively.
• As for the 2016 financial year, Cherry AB’s Board of Directors proposes to the Annual General Meeting that no dividend be paid for the 2017 financial year.
EVENTS AFTER THE END OF THE PERIOD
• On 10 January 2018, Cherry confirmed its forecast for full-year 2017.
• On 22 January 2018, the bondholders set out new terms for Cherry’s senior covered bond 2016/2020 of up to MEUR 200 (ISIN SE0008321616).
• On 29 January 2018, Game Lounge acquired US site Slottracker.com
Comments by the CEO, Anders Holmgren: “Cherry’s strong development continued in 2017. We have captured market shares and our companies have strengthened their positions.
After a year as President and CEO of Cherry, I am able to confirm that Cherry can report yet another good year, from both a financial and operational perspective. A year ago, I wrote that there remained an incredible amount to be done in the gaming industry and that what is great about Cherry is that its five diversified business areas span the entire gaming industry and that Cherry AB owns and manages highly interesting companies. We have already benefited from this strength and progressed some distance in our plans.
A year later, I have the same feeling; we have much ahead of us and Cherry is the player that can most naturally benefit from all of the opportunities available. We will continue to focus on companies run by extremely strong and ambitious individuals with a mix of entrepreneurs and specialists with a strong spirit of innovation. Creativity and hard work drive the products forward, also allowing Cherry’s business areas to grow faster than their respective markets.
Beyond the financial results, we can also acknowledge success in comparison with other players in the industry: at the year’s International Gaming Awards, Cherry won the Mobile Operator award, ComeOn received the Sports Betting Operator award and Yggdrasil received the award for Innovator Supplier of the Year.
Favourable development over the year with potential for improvement
In 2017, Cherry delivered well, achieving total revenue growth of 104 percent, of which 27 percent was organic.
Over the year, we integrated the operations of B2C company ComeOn, Cherry’s largest acquisitions over the years, into our Online Gaming business area. For the most part, this process has progressed as planned, although, in mid-2017, we saw that the company’s costs, market focus and management were not living up to our expectations. Following an intensive period in the second half of the year, the company is back on the growth curve that we envisage. Together, ComeOn’s management and I have identified several priority improvement factors for 2018, and these will be implemented over the year.
Towards the end of 2017, ComeOn launched a product that is in demand in the Swedish market – Snabbare.com. At Snabbare.com, players can find an exciting casino experience without time-consuming registration and they can withdraw their winnings faster. The response shows that products like this are appreciated and have considerable market potential.
High level of activity and acquisitions in Game Development
Yggdrasil completed a strong year with a number of new agreements and launches of several new games, including the revitalized vertical – bingo, that will be launched in 2018 with a host of new features that work smoothly on mobile phones. The company continued to sign important customer license agreements with major, established operators and additional innovative games were announced. The company has made significant investments in marketing and strengthened its relationships with both operators and players. The result was the highest number of game rounds to date and substantial jackpots payouts. In regulated markets, such as Italy, development has exceeded expectations.
During 2018, Yggdrasil will rejuvenate the gaming experience in classic table games such as Blackjack, Roulette and Baccarat. Players will be offered an enhanced experience in a virtual 3D environment and will be able to interact with a digital croupier. First out is Blackjack, a game in which the company has applied its REDUX
technology, developed in-house. The game will include opportunities for side bets, as well as characteristics and personalities unique to each croupier.
In our assessment, Yggdrasil’s strong development will continue, and the company is now investing in a more robust organization to safeguard growth. In 2017, the number of employees increased by 99, and at the end of the year totaled 191, and a new studio was opened in Stockholm.
We took a strategically important step in the quarter with the acquisition of Highlight Games, which broadened Cherry’s gaming development operations. Highlight Games develops innovative products for the virtual sports gaming market both online and in real, including content from league football. The company is currently at an exciting early stage and is working intensively with both development and preparations for its launch of products in several markets from the second quarter of this year and beyond, meaning it will take some time before the company generates revenue. Cherry stepped in as a major investor and strategic partner, initially by acquiring 25 percent of the company, and now owns 37.5 percent of the shares in Highlight Games.
Online Marketing broadens its market
Game Lounge’s performance-based marketing operations continue to grow at a rapid pace and with good profitability. We are seeing that enhanced search engine optimization, combined with building strong brands, has a positive effect. In the Japanese market, we saw a continued increase in the number of visitors, although these contributed only marginally to fourth quarter results. The plan is to continue expanding the operations into several new geographic markets.
In the fourth quarter, the market broadened in which the company’s expertise is combined with existing infrastructure to put borrowers in contact with lenders offering terms suiting the borrower’s circumstances. The first step into this segment was taken in November with the acquisition of the Finnish loan reference website Lainat.fi.
After the end of the period, Game Lounge invested in another complementary segment – optimizing gaming for accustomed players who seek control of their gaming. With the acquisition of Slottracker.com, Game Lounge will continue to develop strong offers for the gaming industry and other areas where the company’s unique skills make a difference.
Swedish gaming commission in final stages
In early December, the Swedish Parliament held a hearing on gaming policy. The industry’s various parties met with the Committee on Cultural Affairs to respond to questions and present their views on the proposal submitted to the government by the Gaming Commission. The timetable stands firm, with a licensing system to be in place from 1 January 2019. Cherry repeated its view that the proposed tax rate of 18 percent is excessive. Legalization of the gaming market, with a high degree of channelling, should be the main purpose of regulation. The UK has successfully achieved a 95 percent channelization, with a tax rate of 15 percent. Unfortunately, we have also received indications that Svenska Spel is preparing for re-regulation by, for example, establishing a business area for licensed gaming. It is our assessment that this will complicate the effective implementation of the new regulations.
Cherry also takes the view that the proposal to increase the maximum wager will not be sufficient to offset the proposed sharp increases in the taxes on gaming tables and in the license fee. As a result, we believe the risk is high that the proposal will lead to fewer jobs and a concentration of operations and tourism to the major cities.
Investments in innovation
In summary, the fourth quarter showed that Cherry has a strong business model that can deliver good returns even in a shorter period of weak development in one business area. As we continue our efforts to ascertain what the market demands, monitoring consumer behaviour and technological development is crucial. We maintain contacts with entrepreneurs who have good ideas and who seek to grow profitably. The number of acquisition candidates suggests that considerable potential remains. Accordingly, we look forward with confidence to further refining our portfolio of investments in innovative and successful operations that can strengthen our positions throughout the gaming value chain.
PRESENTATION OF YEAR-END REPORT
The interim report will be commented on by President and CEO Anders Holmgren and CFO Christine Rankin in a telephone conference on 16 February 2018 at 10:00 a.m. CET. The presentation materials will be available approximately one hour earlier at www.cherry.se. The presentation can be followed via www.cherry.se and/or www.financialhearings.com. To participate by phone, call +46 8 5664 2698 (SE) or +44 20 3008 9807 (UK).
For further information, please contact:
Anders Holmgren, CEO, Tel.: +46 708 607 534, [email protected]
Christine Rankin, CFO, Tel.: +46 765 399 492, [email protected]
Anders Antonsson, IR & Communications, Tel.: +46 709 994 970, [email protected]
The complete Year-end report is attached and is published on www.cherry.se.
Source: European Gaming Media and Events
The iGaming industry is advancing at breakneck speed, driven by technological innovation and evolving player expectations. Itai Zak, Executive Director of iGaming at Digicode, emphasizes the importance of bridging client aspirations with customized business solutions. Key trends shaping the future of iGaming include live dealer games, blockchain integration, artificial intelligence (AI) and machine learning (ML), enhanced personalization, and shifting regulatory environments. Let’s delve into how these trends influence the industry, presenting new opportunities while paving the way for future growth.
A Closer Look at Emerging Trends
- Live Dealer Games
Live dealer games are revolutionizing the online gaming experience, blending the best aspects of land-based casinos with the convenience of virtual gaming. Players can now engage with real-life dealers via high-definition video streams, enhancing the social component of online gambling. This bridge between physical and virtual casinos introduces interactive features like live chat and immersive gameplay. Industry leaders like Evolution Gaming and NetEnt are setting new standards in player engagement with innovative game formats and top-tier studio setups, redefining the realism and appeal of live gaming.
- Blockchain and Cryptocurrency Integration
Blockchain technology is transforming iGaming by offering unparalleled transparency and security. With blockchain’s ability to enable provably fair gaming, players can verify that each round is fair via an immutable ledger. Cryptocurrencies like Bitcoin and Ethereum facilitate faster, more secure transactions, catering to tech-savvy players who value privacy. Platforms like Bitcasino.io are leading the way, leveraging blockchain to ensure fairness and seamless payments. However, the rise of blockchain also attracts regulatory attention, requiring operators to balance innovation with compliance as governments navigate this new technology.
- Artificial Intelligence and Machine Learning
AI and ML are instrumental in enhancing player experience and operational efficiency. AI algorithms analyze player behavior in real-time, offering personalized game recommendations and promotions. Additionally, AI-powered chatbots provide instant customer support, improving user satisfaction. AI-driven predictive analytics also help operators fine-tune marketing strategies based on player preferences. Companies like Bet365 are already using these technologies to stay ahead of the competition, offering more personalized and efficient gaming experiences.
- Richer Personalization and Engagement
Personalization has become crucial for iGaming operators looking to boost player satisfaction and retention. By leveraging data analytics, companies can offer tailored game recommendations, dynamic bonuses, and individualized promotional offers. This level of engagement enhances the player experience and strengthens loyalty. Industry pioneers like DraftKings and FanDuel push the envelope by offering highly customized features, such as personalized fantasy sports leagues and bespoke betting options.
- Regulatory Changes and Market Expansion
The constantly evolving regulatory landscape offers both challenges and opportunities for iGaming operators. As more regions legalize various forms of online gambling, companies gain access to new markets. With their large populations and increasing internet penetration, emerging markets like Brazil and Nigeria represent lucrative opportunities. However, navigating the diverse regulations in these markets requires agility and strict compliance with local laws to succeed.
- Enhanced Payment Solutions
With digital transactions becoming the norm, the demand for fast, secure, and flexible payment methods is skyrocketing. From digital wallets to instant banking and cryptocurrencies, players expect payment solutions that offer convenience and security. This growing demand is driving innovation in payment processing, giving operators more opportunities to streamline the transaction process while building trust with users.
Future Implications
The Expanding Role of AI and Blockchain
AI and blockchain are not just current trends, but they are poised to play an even more significant role in iGaming’s future. As AI technology evolves, more sophisticated algorithms will emerge, enabling real-time adaptation to player behavior and preferences. Blockchain’s application may extend beyond transparency and security, transforming game mechanics and player interactions potentially redefining how games are designed and played.
Shifting Player Preferences
Player expectations will continue to evolve toward immersive, interactive experiences. As Virtual Reality (VR) and Augmented Reality (AR) become more mainstream, they will significantly influence the future of iGaming. Players will demand more engaging, lifelike environments, pushing the industry to create innovative game formats and features that offer deeper immersion and entertainment value.
Regulatory Developments
The regulatory environment will continue to evolve, and iGaming operators must stay agile to navigate future changes. New regulations may increasingly emphasize responsible gaming and player protection, influencing platform design and operational practices. A more harmonized regulatory framework across jurisdictions could provide stability while requiring operators to prioritize compliance.
Integrating Emerging Technologies
Technologies like 5G and edge computing are set to revolutionize iGaming by enabling faster, more reliable connectivity. This will allow for more complex game designs and real-time player interactions, opening new avenues for innovative gaming experiences. As these technologies mature, operators will have greater opportunities to differentiate their offerings. The potential of these emerging technologies to revolutionize iGaming is truly exciting and promising for the industry’s future.
Final Thoughts
The iGaming industry is on the cusp of significant transformations, driven by technological advancements and shifting player demands. Innovations like live dealer games, blockchain integration, AI, ML, and enhanced personalization are just the beginning. As the industry evolves, staying ahead of these trends will be critical for operators looking to thrive in an increasingly dynamic environment.
At Digicode, we are constantly exploring new technologies and refining our solutions to meet the evolving needs of our clients. Our focus on adaptability and foresight ensures that our clients are not just keeping pace with the industry—they’re leading it.
The post Innovations Redefining iGaming: What Operators Need to Know appeared first on European Gaming Industry News.
A partnership between game developer Turbo Games and iGaming solution provider and aggregator Slotegrator began in November 2022 via the APIgrator game integration solution. Since then, the collaboration has been developing successfully — and now it’s time to analyze what made it successful.
Turbo Games has noticed how the new technologies spreading throughout the industry can work for the good of brand transparency and player loyalty: “We can already see how blockchain technology has made it possible to make betting checks more accessible to players. All you need is a blockchain-hash and a decoder service. We think we will continue to move in this direction. Many traditional online casinos do not offer the possibility to check the bet. Sooner or later we all have to come to this. Perhaps the development of artificial intelligence will help here, because we are already seeing its involvement in all spheres of human life.”
Turbo Games specializes in provably fair games. Provable fairness is a concept where players can verify their wins or losses using blockchain technology — the outcome of the game is dictated by a smart contract and is absolutely random, barring the possibility of any human involvement. Using cryptographic hashing algorithms, the gambling site and the player’s device both generate seeds (random strings of numbers). Players receive a key that allows them to check the results; if the results are the same as the game round they witnessed, it proves that there was no foul play.
According to statistics from Turbo Games, the audience for provably fair games is mostly between 18 and 25 years old. However, there are also players aged 35-40 who prefer traditional games but would like to try something new, and have turned their attention to provably fair games.
There are good odds that the technology of provably fair games will become more popular, if not even commonplace, because it gives players a feeling of transparency and proves that the business is trustworthy without the need to search through dozens of reviews. Whereas many innovations in iGaming simply add entertainment, provable fairness addresses security concerns and reassures players that they’re not being exploited, which is invaluable.
Provably fair games are beneficial for both players and online casinos. Vadim Potapenko, Head of Sales at Turbo Games, comments: “It often happens that the users are not satisfied with the result, because gambling is not only about big wins, but also possible losses. By allowing them to check the fairness of a bet, we make life easier for platforms and players. Of course, this allows us to communicate with partners and users that we work honestly and that’s why they should trust our games.”
Ayvar Gabidullin, Business Development Manager at Slotegrator, adds that “this type of game is now becoming more and more popular and has great potential for both players and game providers in the future. On the part of the player, the advantage is that the player can always be sure that his game is fair and he can independently check any of his bets. And for the game provider, this also simplifies the process of implementing casino games, since now it will not be necessary to obtain the appropriate certificates from independent laboratories before launching new games, they can immediately enter the market with these games and where anyone can check the result and make sure that that there is no cheating with players. Many game providers are starting to look towards this type of game. And as far as I see, many operators are starting to think about adding these games.”
What do players in 2023 need? The iGaming industry is all about reputation and trust. Players have a huge number of platforms to choose from, making them pickier and pickier. There’s an abundance of forums where players leave reviews, so if players view a brand as untrustworthy, there are plenty of places they can share their opinion. Provable fairness not only stops that from happening, it provides evidence to the contrary, giving players something else to talk about.
Slotegrator also recommends investing time and effort into localization and creating an effective and detailed marketing strategy — before trying provably fair technology players need to get to the platform, and there is no acquisition without marketing.
ABOUT SLOTEGRATOR
Since 2012, Slotegrator has been one of the iGaming industry’s leading software and business solution providers for online casino and sportsbook operators.
The company’s main focus is software development and support for online casino platforms, as well as the integration of game content and payment systems.
The company works with licensed game developers and offers a vast portfolio of casino content: slots, live casino games, poker, virtual sports, table games, lotteries, casual games, and data feeds for betting.
Slotegrator also provides consulting services in gambling license acquisition and business incorporation.
More information: https://slotegrator.pro/
ABOUT TURBO GAMES
Turbo Games — a provably fair games provider that belongs to Turbo Stars company — has an ambitious goal to establish widespread recognition throughout the iGaming world. Even though it is young, the company consists of professionals who have been working on the brand for over five years and are even planning to introduce a new brand for a wider audience soon.
Turbo Games also works in Europe, India, and South Africa, where the company sees the most potential and expects the same “hype” as in Brazil.
The portfolio of Turbo Games consists of 21 titles, including well-known games like Mines, Crash X, DoubleRoll, Hi-Lo, and Plinko. The studio releases a game every month. However, not all games are developed from scratch. Wicket Blast and Spin Strike, the last two releases, are based on cricket and the Indian Premier League. Crash X remains the most popular fast game in the Turbo Games portfolio, and the studio reports that crash games enjoy stable levels of popularity. Overall, the main focus of the brand is provably fair games.
More information: https://turbogames.io/
Looking to take your career to the next level in the games industry? Then, Nordic Game Talents is the place to be! Games Factory Talents has teamed up with Nordic Game to bring you Nordic Game Talents.
From Oct 27-29, the online and interactive event is dedicated to recruitment and career building in the creative & games industry within the Nordic region. The event empowers participants to be part of a bigger community and motivates them to explore new paths in achieving their career goals.
Hiring creative & games studios – Supercell, Funcom, Panzerdog, Tactile Games, Gamecan, Fingersoft, Dazzle Rocks, Redhill Games to name a few from the Nordic region will be participating in the event. These studios will share information on their latest projects, work culture and what it takes to be part of their team. The individual games associations from Finland, Denmark, Sweden, Norway and Estonia will share insights through live sessions on the booming games industry in their respective countries. Career development topics pertinent to job seekers like – How to have a successful first interview, Creative Portfolio reviews will also be discussed.
Experienced game industry professionals and individuals beginning their careers from around the world are welcome to join the event. One-to-one interviews with the hiring studios can be scheduled through the event platform. A great opportunity to get to know the studios and network with game professionals from around the world.
Participating in the event
As a job seeker attending Nordic Game Talents, take a few minutes to fill out a simple registration form. After filling the registration form you will receive a link to the online event platform – PINE, to join the event on 27th October. Participants joining Nordic Game Talents will also receive a free-of-charge pass to the Nordic Game Conference.
To view the complete agenda, please click here and to learn more about the event please visit Games Job Fair
About Games Factory Talents
A Helsinki-based talent attraction agency dedicated to the games & creative industry. Our services include direct recruitment, organizing game job fairs and managing a community of game industry professionals through our GameDev Talent Board.
To learn more about Games Factory Talents visit – Games Factory Talents
Soft2Bet to showcase turnkey and gamification solutions at ICE 2025 in Barcelona
Gambling.com Group Completes Acquisition of Odds Holdings, Inc., Parent Company of OddsJam
Stake secures Brazil licence, appoints Thomas Carvalhaes as country manager
Stand and deliver! Play’n GO heads to the highways with Midnight Gold
Booming Games shine with new 64 Gold Coins Hold & Win
Vixio Announces Winners for the 2024 Global Regulatory Awards
GamCare releases Annual Report following record breaking year of support on the National Gambling Helpline
Rush Street Interactive’s Laura McAllister Cox Named Chief Compliance Officer of the Year at Vixio Global Regulatory Awards
SimplePlay has launched a new Slot Game: Doggie Star
Aristocrat Interactive Teams Up with Big Bola to Power Full Suite of iGaming Solutions Across Mexico
-
gaming2 years agoODIN by 4Players: Immersive, state-of-the-art in-game audio launches into the next generation of gaming
-
EEG iGaming Directory8 years ago
iSoftBet continues to grow with new release Forest Mania
-
News7 years ago
Softbroke collaborates with Asia Live Tech for the expansion of the service line in the igaming market
-
News6 years ago
Super Bowl LIII: NFL Fans Can Bet on the #1 Sportsbook Review Site Betting-Super-Bowl.com, Providing Free Unbiased and Trusted News, Picks and Predictions
-
iGaming Industry7 years ago
Rick Meitzler appointed to the Indian Gaming Magazine Advisory Board for 2018
-
News6 years ago
REVEALED: Top eSports players set to earn $3.2 million in 2019
-
iGaming Industry7 years ago
French Senator raises Loot Boxes to France’s Gambling Regulator
-
News7 years ago
Exclusive Interview with Miklos Handa (Founder of the email marketing solutions, “MailMike.net”), speaker at Vienna International Gaming Expo 2018
