iGaming Business – Swedish gaming operator Cherry has registered a net loss of SEK8.2m (€902,000/$1.3 million) for 2013.
Cherry said that the loss was due to investing in online gaming operations, with the company having launched the SpilleAutomater.com website and invested in game development company Yggdrasil Gaming and the Klubblo lottery in partnership with Swedish sports and media group Metro.
Cherry also acquired 49% of online gaming company Web Resorts in November, and the company reported a SEK10.6 million net loss for the fourth quarter, even though total sales increased by 16% to SEK75 million.
Turnover for the year increased by 15% to SEK266.3 million with online gaming revenue increasing by 32% to generate SEK127.5 million of the total.
“Cherry continues to grow substantially within online gaming and 2013 has been a year of building through large investments,” Cherry chief executive officer Emil Sunvisson said.
“Cherry has this year launched several new brands on their platform, built using the latest technology with support for both mobile and PC platforms… Cherry has (also) invested in marketing to build brand awareness.
“Overall, these efforts resulted in a substantial burden on earnings for 2013, but also provided us with a platform that is required to develop the company.”
