Cherry Red: Q4 Blossoms into Robust Growth Numbers

Published March 4, 2017 by Lee R

Cherry Red: Q4 Blossoms into Robust Growth Numbers

A new CEO is set to manage Cherry’s robust newest expansion phase.

Cherry’s growth reflects an adaptive expansion strategy which promises resilience for the immediate future. 

Flavorful Q4

First off, 2016 Q4 revenues for the innovative Swedish gaming company saw an extremely robust 201% rise to MSEK 519.4 to drive further significant organic revenue growth of 41 percent. The robust performance was visible in profitability as well, with EBITDA increasing 353% year-on-year to MSEK 106.3 (23.4).

Online Gaming Roots

Of course, online performance is the real kicker these days, with Cherry’s online gaming revenue growing organically by 51 percent.  The acquisition of Comeon during Q4 spurred revenue performance growth of 294 percent after the deal.

Patronage Triples

The number of active customers increased by 339 percent to 310,706 (70,746), while Q4 numbers including the December ComeOn acquisition brought in new customers numbering 1,798,546 (91,275).

Cherry Holdings Performance

Cherry’s Game Lounge revenue grew by 138 percent with EBITDA jumping 37 percent to MSEK 5.3 (3.9).

Yggdrasil Gaming revenue grew 207 percent with EBITDA increasing 171 percent to MSEK 13.2 (4.9).

Restaurant Casino’s revenue amounted to MSEK 42.8 (44.3) and EBITDA amounted to MSEK 4.9 (4.9).

Technology Investment

Cherry’s strategy of aggressive investment in gaming assets continued with the November launch of XCaliber Gaming Technology which is set to be reported separately from the first quarter of 2017 as well.

The ComeOn Deal          

Cherry exercised its option to acquire the remaining 51 percent of shares in ComeOn Malta Ltd. The acquisition was designed to spur organic growth leading to an estimated tripling of revenues, with a goal of full year 2017 figures falling between MSEK 2,600 and MSEK 2,700 with an EBITDA of MSEK 550 and MSEK 600.

Full Year

For fiscal year 2016, Cherry Group revenue increased 109 percent year-on-year compared to 2015 full year performance figures, amounting to a total of MSEK 1,102.4 (528.7).  Other full year figures include EBITDA increasing 393 percent and to MSEK 177.7 (35.9).

Change at the Top

Cherry CEO Fredrik Burvall has come to an agreement with the Board of Directors AB for Burvall to vacate the CEO position for family reasons, remaining with the company in a yet to be defined role until summer 2017. Betsson co-founder and former Betsson Malta CEO Alders Holmgren is set to take replace Burvall. 


The impact of strategic acquisitions on growth should not be overlooked, with Cherry the latest example of how mergers and acquisitions are impacting individual performance.

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