The Board of Cherryföretagen has selected Handelsbanken Capital Markets exclusively as
financial advisor in connection with the previously reported plans to split Cherryföretagen into
three separate listed companies; Betsson, Net Entertainment and Cherry Casino.
The proposal will be structured so that Betsson will continue its operations under the listed holding company
Cherryföretagen AB (publ). It will be proposed that Cherry changes its name to Betsson.
Currently, the business divisions operate independently which has limited synergy effects. The cooperation
between the business areas is carried out under general market terms and is regulated by contracts.
Cherry Online
Cherry Online, that will soon become Betsson, operates Internet gaming on a global market, e.g. via Betsson.com
and CasinoEuro.com. This includes poker, casino games and sports betting. Additional products are in the pipeline.
The company is run from Malta and the UK, countries that have highly regulated gaming markets. Turnover increased in the first three quarters of last year to MSEK 101.4 (18.8) and operating profit rose to MSEK 8.8 (-2.6).
The company has strong growth and good profitability.
Net Entertainment
Net Entertainment develops gaming software, which is in turn licensed out to a customer base that today consists
of over 30 gaming companies including Unibet, Gamebookers, Ongame, Bet24, 24hpoker and Betsson. Revenues
are generated through royalties and other sales proceeds. Turnover, including internal sales to Cherry Online, for
the first three quarters last year reached MSEK 59.8 (30.1), with an operating profit of MSEK 26.6 (16.0). The
company is showing strong growth and good profitability.
Cherry Casino
Cherry Casino operates traditional gaming such as Black Jack and Roulette in restaurants, on vessels in
International waters, gaming machines as well as other traditional gaming operations. The main part of the
operation is carried out in Sweden and Denmark. Cherry Casino has approximately 700 employees. Turnover for
the first three quarters last year reached MSEK 177.7 (182.6) with an operating profit of MSEK 5.2 (6.4). Cherry
Casinos operations have a stable cash flow.
A split requires shareholders approval. Notice of the general meeting will be provided as soon as detailed plans
have been determined by the Board. The proposal is supported by shareholders representing more than 70% of the
votes.
For further information, contact:
Pontus Lindwall, President and CEO, telephone: +46 8-556 967 10, mobile: +46 708-27 51 55, [email protected]