Annual Report 2012.pdf - Cherry

PART 1 CHERRY – 50 YEAR ANNIVERSARY
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8 | cherry 50 years
The 70s were a period of fantastic success for
Cherry – and at the same time a lot of hard work
to keep competitors at bay. Good service and competent
staff have been important components in
Cherry’s business concept from the very beginning.
Something that has been significant in maintaining
the lead in relation to competitors.
This was matched with curiosity and the thrill of
discovery – what was round the corner? What new
forms of gaming could be interesting and successful
in the time ahead?
The driving force to keep on thinking ahead led
Cherry to initiate cooperation in 1974 with a small,
newly started electronics company in California.
This company was Atari, a partner who undeniably
proved to be focused on future gaming experiences.
The successful era of slot machines came, however,
to an abrupt end. A decision was taken in 1978
to prohibit slot machines in Sweden. The decision
came into force on 1 January 1979 and Cherry had
to spend a lot of energy, time and money to change
the organisation and operations to the new gaming
regulations on the market.
Gaming on boats – and outside Sweden
A slimmer organisation began to look for new
business opportunities after the prohibition of
slot machines came into force. About 5 000 slot
machines stood along the walls in a warehouse in
the south of Stockholm.
Soon enough they came to the conclusion
that there ought to be possibilities of using the
machines in other places. Cherry had already begun
to widen operations outside the borders of Sweden,
AB Restaurang Rouletter was
founded by Bill Lindwall and Rolf
Lundström. It operates mainly in
southern and central Sweden.
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Cooperation is established with AB Roulett
konsult & Spelautomater founded by Per
Hamberg and Lars Kling. The business
operation is now nationwide.
New legislation enables licensed
restaurants to provide slot machines
with winnings in Swedish kronor.
The Cherry name and the
cherry symbol are registered.
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with organised branches in England, Norway and
Denmark. Moreover, Cherry was involved in casino
operations in Cadiz in Spain and in Majorca, with
agreements for slot machines with more than a
thousand bars and public places.
It also became clear that several Eastern European
countries were in a phase that was suitable for
the launch of slot machines on a broad front. For
several years successful operations were developed
in what were Yugoslavia, Czechoslovakia, the Soviet
Union and Poland. The expansion in the east was
complicated, however, by such things as soaring
inflation and, even here, governments who put
obstacles in the way.
In parallel with foreign expansion, Cherry also
found business opportunities in another inter-
national arena, namely the boats sailing on
international waters. Most of these permitted slot
machines, just because they were on international
waters. The Maritime part grew quickly in Sweden
and also spread to the Mediterranean.
The Internet emerges
In 1997 hardly as many as two million Swedes aged
between 15–74 used the Internet more than once
a month. Today around six million Swedes use the
Internet daily.
But in 1997 the combination of curiosity and
vision made itself felt in Cherry once again. It was
then Pontus Lindwall (son of one of the founders,
Bill Lindwall) set up guidelines for gaming experiences
via the Internet. It was subsequently revealed
that others were on the same track, but Cherry was
once again an early starter in this venture. They took
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Cherry is acquiring several former profit generating
Swedish gaming companies and is financing these
acquisitions with the issue of new shares. The foundation
for a new group is being created.
1986 –
1991
The Swedish Parliament takes a decision
to prohibit slot machines. The platform
for Cherry’s operations disappears during
the course of one month. An extensive
reorganisation is begun.
Cherry operates slot
machines and casinos in
several Eastern European
countries.
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Developments in Eastern
Europe causes Cherry
extensive losses. The
board decides to focus
on core markets and
to trim or discontinue
investments in Eastern
Europe.