Cherry reveals significant revenue and EBITDA growth
Cherry has revealed that it was able to achieve considerable year-on-year growth in terms of both revenue and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) during the three months through to March 31.
Group revenue in the opening quarter of the year came in at SEK177.3 million (€19.1 million/$21.8 million), up 86% on the SEK95.3 million posted in the same period last year.
EBITDA was also up from a loss of SEK4.5 million last year to a positive figure of SEK25.6 million in the first quarter of 2016, with earnings before interest and tax also increasing from negative SEK8.9 million to a plus of SEK25.6 million.
Cherry noted that its online services now account for 78% of its total revenue, up from 63% last year, while its online gaming business expanded 118% year-on-year and boasted an EBITDA of SEK16.5 million.
In addition, Cherry highlighted that its Yggdrasil Gaming arm was able to achieve year-on-year growth of 519%, with EBITDA up from a loss of SEK400,000 to a plus of SEK7.9 million.
Fredrik Burvall, chief executive of Cherry, said: “Cherry continues to deliver according to its strategy, which combines organic growth with strategic acquisitions.
“The first quarter showed further strong growth and a significant increase in profits.
“Our ambition is to continue to grow faster than the market and we are well prepared to do so, both through organic growth and acquisitions.
“Our strategy and our diversified business areas create very good conditions for continued strong expansion, strong profitability and strong growth of value.”
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