Cherry reveals continued growth, strong profitability in Q1
Group revenue amounted to SEK541 million (€55.9 million/$60.8 million), up 205% on the SEK177 million posted in the corresponding period last year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at SEK83 million, which is 224% more than in Q1 of 2016, while EBITDA margin improved from 14.5% to 15.4%.
Elsewhere, earnings before interest and tax climbed to SEK52 million, while profit for the first quarter totalled SEK36 million, up from SEK17 million in Q1 of last year.
Earnings per share before and after dilution for the period stood at SEK1.21 and SEK 1.19, respectively.
Anders Holmgren, chief executive of Cherry, said: “With a strong acquisition year behind us, the first quarter was mainly characterised by consolidation; at the same time, we grew as planned and with good profitability.
“Partnerships and synergies have enabled an even stronger focus on innovation, improved customer experience and continued growth.
“All business areas performed well, with a strong contribution from gaming development – Yggdrasil Gaming and performance-based marketing – Game Lounge; online gaming-ComeOn! showed stable growth.
“During the quarter, we made significant investments in marketing, which affected earnings but created strong conditions for increased customer intake in the upcoming quarters.
“The acquisition of ComeOn! expands our portfolio of products and brands and creates good conditions for strong organic growth and continued international expansion.”
Holmgren added: “Cherry has broadened the group's business to cover the entire value chain within gaming.
“A strong organic growth and further acquisitions of entrepreneurial companies give us a unique platform to continue to create value.
“Overall, within Cherry we have the strengths and advantages that give us the opportunity to continue to grow faster than the market.”
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