Cherry reveals significant revenue growth in Q2, H1

Cherry has reported massive year-on-year revenue growth for both the second quarter and first half of the current year.

Group revenue in three months to June 30 totalled SEK536m (€56.4m/$66.4m), up 179% on the SEK192m posted in the second quarter of 2016.

Cherry said that profitability improved during the period, while earnings before interest, tax, depreciation and amortisation (EBITDA) also rocketed 524% year-on-year to SEK93m, with a margin of 17.3%.

Profit for the second quarter stood at SEK15m, compared to SEK8m last year.

Cherry has completed a 100% takeover of gaming operator ComeOn! in the last year. 

As a result of this positive performance, Cherry was able to report total revenue of SEK1.08bn for the first half, an amount that is 192% more than the SEK369m posted in the same period last year.

EBITDA in the six months to June 30 came in at SEK176m, which is 334% ahead of last year, while profit also hiked from SEK26m to SEK51m.

Confirmation of the results comes after Cherry earlier this week announced that it was to lower its forecast for the full year, due to the impact of ongoing work related to the integration of the ComeOn! online gaming business.

Anders Holmgren, chief executive of Cherry, said: “We continue to be a profitable, fast-growing company, even if the integration of ComeOn! has not yet reached full positive effect.

“By further diversifying and consolidating our operations, we strengthened our platform and thus the conditions for long-term leverage.

“Game development and performance-based marketing are the stand-out performers, but online gaming has not quite been delivering in line with our plan.

“However, the online gaming business continued to develop positively.

“In summary, the second quarter confirmed a continued positive trend for Cherry, and the development has been strong throughout the opening period of the third quarter.”

Related article: Cherry lowers forecasts as ComeOn! integration continues