Cherry AB growth has jumped exponentially in Q2, according to a new report.
The growth continues to be driven primarily by the Nordic online gambling company’s 2016 acquisition of ComeOn.
Q2 numbers showed significant jumps in revenue (179% to SEK 536m), earnings (524% to SEK 93m) and a near double jump in profits to profit (SEK 15m.
Cause for Optimism
Cherry CEO Anders Holmgren added even more optimism to the Q2 figures, saying that “the integration of ComeOn has not yet reached full positive effect.”
Holmgren further updated the acquisition of ComeOn by saying that his organization is still awaiting the full impact of the brand’s marketing efforts during overall positive development which Holmgren acknowledged to taking “a little longer than initially anticipated.”
Even without the mid-2016 addition of Malta-licensed ComeOn.com, these figures maintain an impressive organic revenue rate of 37%.
Driving Q2 Gains
Q2 gains were driven by Cherry’s purchase of the remaining 51% of ComeOn, as well as adding stakes: a new 25% investment in gaming technology firm Highlight Games Ltd was accompanied with an unspecified stake increase in German online casino and sportsbook operator Almor Holding Ltd.
Raising the Stakes
The 25% stake increase in highlight Games taking effect June 1st necessitated the absorption of a net loss of SEK 600k, with Cherry confident in a full turnaround which will be visible in Q4 following the launch of products in “several” new markets.
Cherry stake Game Lounge affiliate business revenue rise 164% to SEK 33m, with all but SEK 5.7m gained from external sites, while growth was reported in all markets despite reduced marketing efforts. With a 51% current stake in Game Lounge, Cherry holds the option of acquiring the remaining 49% after 2017.
Overall Diverse Contributions
Other Cherry holdings contributing to the figures include technology and payment offshoot XCaliber’s reported revenue contribution of SEK 9.6m, with all but SEK 100k contributed via ComeOn, from which it was spun off last November; while Cherry Spelglädje restaurant casino division reported revenue rising 3.4% to SEK 37.2m.
With dynamic diversification taking place on all fronts, Cherry’s activity appears a sound and effective platform for growth.