Cherry's Q3 Pie Raises Hopes for Abundant Yield to Finish off YearPublished November 18, 2016 by Lee R
Cherry has gotten what many might call ideal strategic results for the iGaming merger era.
Things are looking decidedly sweet at Cherry after Q3 on more than one front.
Strong Q3 performance, internet growth, tangible results from the year’s mergers, and a new UKGC license have the Swedish operators ripe with optimism for figures to blossom in Q4.
Strong Q3 Reports
First off, the strong new 2016 reports: Q3 revenue figures came in at SEK214 million, up 39% from the three months ending September 30th in 2015. Further, the company’s online division has soared, with Internet revenues up 39% year-on-year.
Absorbing the Acquisitions
Despite absorbing €80 million in July’s acquisition of a 49% stake in ComeOn Malta Ltd EBITDA still turned in a very strong showing, totalling SEK30.9 million in Q3, a smashing 78% jump year-on-year. Concurrently, EBIT almost doubled year-on-year to SEK21.5 million for 2016, up from SEK11 million for 2015 Q3.
Cherry’s new development studio Yggdrasil Gaming reported a 299% jump in quarterly revenue and EBITDA of SEK9.2 million, up 385% from Q3 2015.
Game Lounge Expands
Cherry’s new Malta-based Game Lounge grew 167%, with the online marketing division growing its EBITDA 104% to SEK6 million.
Restaurant Casino Drops
Cherry Restaurant Casino brand generated revenue of SEK39.5 million for Q3, a slight drop from the SEK42.5 million generated in 2015, with EBITDA dropping to SEK4.2 million from SEK5.3 million for Q3 of the previous year.
Despite the slight drop on one area, Cherry’s moves have clearly paid off, with the yearly totals for all aforementioned holdings also rising significantly, accentuated by the exponentially year-on-year jumps in EBITDA (SEK71.4 million), up an amazing 472% , and EBIT, way up to SEK45 million from a negative of SEK3.1 million.
CEO Fredrik Burvall lauded the company’s accelerated growth as exemplifying an organizational strategy of developing its business areas and expanding its portfolio through strategic acquisitions.
Bright Future Now
With a new UKGC license win announced last Friday November 11th, look for more significant expansion with the massive UK frontier opening up.