Cherry Revenues Look Sweet, as Long as the Online Pie is Well CutPublished November 11, 2017 by Lee R
Gross revenue gains across the board are spurred equally by online gaming at Cherry in Q3.
Sweden’s Cherry Games has posted what appears to be a stunning jump in revenue for the period of Q3, with the expansion of online operations as a resource which did not exist in that unregulated market a few years ago providing an equal contribution to the boost.
The total increase reported by the Stockholm-listed gaming operator is an astonishing 165 per cent increase in group revenue for the third quarter of 2017, with online gaming business accounting for 79 per cent of the total.
Cherry’s third quarter revenue total of SEK567.0m (€58.0m) represented a 165 per cent year-on-year jump, which translated to 30 per cent on an organic basis, while EBITDA grew a whopping 263 per cent to SEK112.0m (€11.4m) alongside margin growth of 14 to 20 per cent.
Total profit for the period ended up at MSEK 42 (31).
Cherry CEO Speaks
Cherry CEO Anders Holmgren expressed his pleasure at seeing his company’s operations “continue to develop strongly,” looking forward to increased profitability as direct result of increased performance from the organisation’s online gaming sector.
Key Online Acquisition
The online sector is where the acquisition ComeOn operations spurred key growth, and contributed to the massive boost in revenues.
In the online gaming department itself, Cherry reported revenue growth of 214 percent, from MSEK 143 to MSEK 448 with an EBITDA margin of 15 percent.
The Next Step
The online deal with ComeOn saw enhanced integration of online gaming operations, with that integration causing some gaps in profitability due to investment in the deal.
Achieving True Profitablity
However, as operations lean out post integration, the streamlining of operations is ultimately expected to reduce operating costs and improve the amount of profitability so that Cherry can take net closer to the lion’s share of the newly booming revenues which it logically ascribes to.