Fruitful 2017 Promises More Cherry Yields in 2018Published February 21, 2018 by Lee R
Cherry is effectively adapting sound business strategy as well as management to the online space.
Cherry’s year-end report shows twin pillars of robust growth and effective investment in innovation.
The year-end figures were bolstered by strong gains in Q4. These included group revenue increases of 17% year-on-year to MSEK 607 (from 519), while organic revenue growth topped out at 16% (at 41).
Profitability and EBITDA Climbs
Q4 gains were further visible in always vital profitability and EBITDA, which jumped 37% to MSEK 141 (from 103), while EBITDA margin climbed 23.3% to 20.5.
These gains all translated to improved profits Q4 accumulating to MSEK 18.
Q4 Stock Transition
A transition in Cherry’s stock status also took place during the quarter, resulting in earnings per share before and after dilution of SEK 0.05 (0.72) and SEK 0.05 (0.71).
The key development for Cherry in the quarter on the public trading front was the shifting of listing from the AktieTorget exchange to Stockholm’s main Nasdaq list effective from the 18th of October, when Cherry’s B shares began traded on the Mid Cap list.
Key Q4 acquisitions for Cherry in the quarter included an additional 12.5% of the shares in Highlight Games to bring the total shares that Cherry owns in that company to 37.5%; and Cherry’s acquisition of the majority of shares outstanding in Game Lounge, with Cherry now in possession of 95% of Game Lounge public shares effective as of January 1, 2018.
As for the year, group revenue vaulted 104% to MSEK 2,252 (1,102), while organic growth sprang accordingly to 27% (at 32).
2017 Profitability and Profit
Meanwhile, in 2017 profitability improved with EBITDA up 146% to MSEK 429 (from 174) and EBITDA margin up 19.0% to 15.8.
Total profit for the period was MSEK 110 (125).
Yearly Share Returns
Solid returns per share before and after dilution for the year yielded SEK 0.53 (1.28) and SEK 0.53 (1.27) respectively.
2017 Awards Hardware
Cherry also won key industry awards such as the International Gaming Award for Best Mobile Operator, while ComeOn won the Sports Betting Operator award and Yggdrasil was crowned Innovator Supplier of the Year.
The fruits of Cherry’s efforts certainly can be expected to multiply in 2018 with more effective acquisitions and improved performance.