Sweet Growth Continues for Cherry in Q1

Brett C. - May 16, 2017

Cherry AB recently released its interim report for Q1 2017. Group revenue was up 205% (Y-o-Y), and profit amounted to MSEK 36. CEO Anders Holmgren was pleased with the company's performance.

Cherry AB released its quarterly financial report for the period January 1, 2017 – March 31, 2017. The company reported strong revenue growth for the group of 205%, with revenues of 541 million SEK, comprising an organic growth increase of 44%. The group's profitability was up, with EBITDA at MSEK 83 and the EBITDA margin at 15.4%.

The company's profits during Q1 2017 amounted to MSEK 36. EPS of SEK 1.21 was reported. Compared to Q1 2016, revenue was up MSEK 364 year on year, organic growth was up from 19% to 44%, and profit increased from MSEK 17 to MSEK 36. The company's equity to assets ratio declined from 56% a year ago to 21% in Q1 2017.

A word from the CEO

CEO of Cherry AB, Anders Holmgren had this to say about the group's performance: 'With a strong acquisition year behind us, the first quarter was mainly characterized by consolidation… We grew as planned and with good profitability… Stronger focus on innovation, improved customer experience and continued growth.'

Financial Metrics Show Strong Performance Year-on-Year

Cherry AB is anticipating strong growth in 2017, with a forecast EBITDA of MSEK 550 - MSEK 600. Growth projections are expected in the region of MSEK 2600 - MSEK 2700. For the full year in 2016, revenues amounted to MSEK 1,102, with EBITDA of MSEK 174, and EBIT of MSEK 115. With just the first quarter completed, these metrics are already on track to be surpassed in a big way.

Cherry AB is a Swedish online gaming company.For Q1 2017, the number of registered customers was 3,498,921 – approximately 300,000 higher than in Q4 2016. The number of new registered customers during Q1 2017 was 317,122, and the number of active players amounted to 345,904.Online gaming accounts for the bulk of the company's revenues at MSEK 453.2, while restaurant casino, game development and affiliation account for less than MSEK 100 combined.




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