A Word from the CEO, Emil Sunvisson
Compared to 2011, it is very satisfying to note that all business areas now show better results and that the Online Gaming is growing fast at the same time. The start of 2012 is positive. Cherry continues to face many challenges. In particular, we need to focus on the profitability within Maritime gaming. We challenge the problems through improvement programs but also by renewing our crew. The rapid re-regulation of the European markets, that we are witnessing, creates exciting new opportunities but also new demands on both our products and our organization.
Online Gaming - Strong growth
Cherry's focus on online gaming machines continues to generate growth and profits. The operations are conducted in cooperation with strong and competent partners. The business is mainly concentrated to Scandinavia. Preparations are underway to address new European markets with EuroSlots.com, which is a prerequisite for continued profitable growth. Meanwhile EuroLotto has focused on activating the large customer base, that was built up over the past year, which has led to reduced marketing expenses for the 1st quarter.
Restaurant Casino - Yet another strong quarter
Both sales and profit for the business area Restaurant Casino outperformed last year. In particular, sites with seasonally limited activities during the winter months have contributed positively. Cherry has, in the 1st quarter,
increased our market share, despite a declining market, and signed an agreement with one of the best gaming locations in Stockholm, Gröne Jägaren. It is with great pleasure that I note that Cherry consolidates its leading position by taking over important gaming locations and market shares from our competitors.
Maritime Gaming - Recovering from low levels
Seasonally, 1st quarter is weak within Maritime gaming when many ship owners take their vessels out of service for maintenance during the off season. In terms of turnover the business in Scandinavian waters and around the British Isles is improving and in the Mediterranean is doing worse, compared to 1st quarter 2011. The total is in line with last year. In terms of earnings, the situation looks better, due to lower costs.
For further information please see the full Interim Report 1, 2012.
Stockholm, May 9, 2012
President and CEO
Phone +46 8 514 969 50, +46 709 279 611, firstname.lastname@example.org