Looking at Cherry's H1: How Organic is Sweet Cherry Growth?

Published September 1, 2016 by Lee R

Looking at Cherry's H1: How Organic is Sweet Cherry Growth?

Online growth has almost exclusively to Cherry´s fruitful jump in overall growth.

Cherry´s online growth is so sweet it is hard to believe.

Online Impact

Cherry CEO Fredrik Burvall has credited online performance as the key driver of overall growth for the last six months through June 30th.

Revenue Total Highlight

Overall highlights include revenue totals for the first half reaching SEK369 million (€38.9 million/$44 million), an astounding jump of 83% year-on-year from the corresponding period last year, with online delivering 80% of this total. 

Earnings Turnaround

More overall highlights include smashing reversals of earnings before interest, tax, depreciation and amortisation (EBITDA), which increased from a deficit of SEK4.9 million to a positive of SEK40.5 million; and earnings before interest and tax, which jumped from negative SEK14.1 million to a plus of SEK23.5 million.

Assets Double

Cash and liquid assets jumped at a similar rate, more than doubling from SEK24.7 million to SEK67.8 million.

Strategy

The Cherry boss explained that his company maintained a corporate strategy of “strong organic growth with strategic acquisitions.”

Of online performance, Burvall contextualized his company´s market performance by adding that Cherry´s online activities are growing “considerably faster,” than the market, and that he “henceforth” expects Cherry to continue to grow faster than the market as well.

Goals

Cherry defines the current strategic goals of the organization as seeking to optimize opportunities for “continued high growth, high profitability and strong value growth.” While these heady terms might sound self-evident, how they are implemented still depends on individual organizational strategy. 

Implementation

Strategic measures Cherry has already implemented include the acquisition of Almor and a consolidation with ComeOn. With bonds issued in conjunction for the latter expected to come on the Nasdaq Stockholm market in September, maybe we can see what organic growth results from that.

Making Sense

What does organic growth really mean? To Cherry, online growth and organizational growth appear to be two requirements.  In the coming months we will find out how Cherry implements the best practice strategies touched upon by their top boss. 

Mentioned in this article

See also

Cherry Casino's Online Gaming Growth Benefits Players

Figures Show: Cherry Growth for 2015 Driven by iGaming

Cherry Reports: Good Online Gaming Growth in 2014

Cherry Buys 71 Percent Of Shares Of Almor to Expand into German Speaking Market

Cherry Acquires NorgesSpill Gaming


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