Cherry reveals 104% revenue growth in 2017

Cherry has announced “strong” financial growth for the 12 months to December 31, 2017, with revenue up 104% year-on-year.

Revenue came in at SEK2.25bn (€226.9m/$284.3m), compared to SEK1.1bn in the previous year, with organic growth amounting to 27%.

Earnings before interest, tax, depreciation and amortisation (EBITDA) was up 146% year-on-year to SEK429m, with an improved margin of 19%.

However, profit for the year was down from SEK125m in 2016 to SEK110m.

As such, earnings per share before dilution dropped from SEK1.28 to SEK0.53, with earnings per share after dilution down from SEK1.27 to SEK0.53.

Cherry also posted its results for the final quarter, during which revenue hiked 7% year-on-year to SEK607m and EBITDA 37% to SEK141m.

However, profit for in three months to December 31 came in at SEK18m, down from SEK68m in the corresponding period last year.

Anders Holmgren, chief executive and president of Cherry, said: “Cherry’s strong development continued in 2017; we have captured market shares and our companies have strengthened their positions.

“A year ago, I wrote that there remained an incredible amount to be done in the gaming industry and that what is great about Cherry is that its five diversified business areas span the entire gaming industry and that Cherry AB owns and manages highly interesting companies.

“We have already benefited from this strength and progressed some distance in our plans.”

Holmgren added: “A year later, I have the same feeling; we have much ahead of us and Cherry is the player that can most naturally benefit from all of the opportunities available.

“We will continue to focus on companies run by extremely strong and ambitious individuals with a mix of entrepreneurs and specialists with a strong spirit of innovation.

“Creativity and hard work drive the products forward, also allowing Cherry’s business areas to grow faster than their respective markets.”

Meanwhile, Yggdrasil Gaming, part of the Cherry business, has also announced its results for 2017, revealing revenue and EBITDA growth.

Revenue increased 95% year-on-year to SEK169.1m, while EBITDA jumped from SEK40.1m to SEK71.5, with a margin of 42%.

Earnings before interest and tax at Yggdrasil hiked from SEK27.4m to SEK58.8m, with a margin of 35%.

Fredrik Elmqvist, chief executive of Yggdrasil, said: “It has been a remarkable 12 months, but I am even more excited about the possibilities and opportunities that lay ahead in 2018.

“We have a world-class team, an industry-leading product set and the best customers in the business, and we will be building upon this throughout the year and beyond.”

Related article: Cherry confirms financial forecast for 2017