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News Archive
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[2005-12-20]
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Online gaming company Cherryforetagen, otherwise known as Cherry, announced that it is to split into three separate companies.
It is expected that the three new firms will be Betsson, currently Cherry Online, which will offer online gaming options, Net Entertainment, which will be involved in game development and sales and licensing, and Cherry Casino, which will focus on the more tradition areas of gaming, such as land casino games and gaming machines.
Cherry Casino will operate primarily in Sweden and Denmark as well as on cruise ships.
Gaming options that currently appear on the website include blackjack, craps, slots, Texas hold'em and Omaha online poker, scratch and win cards, Baccarat and roulette.
The split, which is expected to double the company's turnover from SEK435 million (£31 million) to around SEK800 million, is forecast for 2006.
Cherry's board hopes that the restructuring will allow the separate companies to expand at a faster rate than if they were to remain together under the same banner.
Pontus Lingwall, chief executive officer at Cherry, states that following the split, each company will be in a position to receive more individual attention from investors.
Mr Lingwall said: "The internet-based operations will grow more quickly and with a higher profitability in their own companies … I also believe that the market will appreciate having three clear investment alternatives."
Cherry currently holds around 300 land-based casino licenses and is quoted on the Stockholm stock exchange. It also owns 100 per cent of Net Entertainment, the online gaming company.
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