Swedish Online Casino Splits
Publicly-listed Swedish online casino company Cherryf?retagen, or Cherry as it is more commonly known, has announced its decision to split into three independently listed companies. The proposal to carve up the company was adopted when the online casino operator determined that development could proceed at a faster rate if it was spread over three separate operational branches. Cherry’s plan is to increase revenues generated by its online casino business and to give its shareholders the option of investing in different parts of the company.
The decision to split the online casino company into three parts will also result in a name change. Cherry’s online casino, currently called Cherry Online Casino, will take on the name Bets On. Another part of the business, Net Entertainment, will focus on software development and the licensing of online casino gaming systems, while Cherry Casino will market traditional land-based casino games for cruise ships in Denmark and Sweden.
The online casino firm intends to complete the split in the second quarter of 2006. CEO Pontus Lindwall has expressed hope that by splitting the company, more attention will be given to each part. In particular, the online casino segment of the business is predicted to yield higher profitability under its new branding. Currently Cherry’s expected turnover is $311 million US dollars. The company is expected to double turnover after 2006.