In the first six months of the year, B2B and B2C gaming operator Cherry saw strong revenue growth across all wings of the business, while the company announces its intentions to continue with a spate of new acquisitions.
[dropcap]C[/dropcap]herry CEO Fredrik Burvall has applauded the company’s successful acquisitions strategy as the company reports a hike in revenues for the first half of the year.
For the six months ended 30 June 2016 Group revenues amounted to SEK369m (€38.9m), representing year-on-year growth of 83 percent, with online gaming operations making up 80 percent of total revenues.
The company also saw significant improvements to profitability, with EBITDA growing to SEK14.8m (€1.56m) from SEK-0.4m (€-42,100) and EBIT growing to SEK6m (€0.63m) from SEK-5.2m (€-0.55m). The company’s balance sheet was impacted by the SEK4m costs of acquiring games studio ComeOn and going public on the Nasdaq Stockholm stock exchange.
In a statement, Burvall said that the NASDAQ listing had been postponed in favour of the acquisition of ComeOn, but reassured stakeholders that the company still planned to be listed by the end of 2016.
Our ambition is to continue to grow faster than the market and we are well equipped to do this both through organic growth and acquisitions.
Cherry, which ended Q2 with consolidated cash amounting to SEK67.8m (€7.14m), is also set to continue the assertive acquisitions strategy that saw it pick up B2B companies Yggdrasil and ComeOn.
Over the period, Yggdrasil secured a gaming licence in Gibraltar and saw EBITDA rise to SEK17.7m (€1.86m) up 661 percent from same period last year.
“Our ambition is to continue to grow faster than the market and we are well equipped to do this both through organic growth and acquisitions,” Burvall commented.
“Our strategy, in combination with differentiated business areas, will create excellent opportunities for continued high growth, high profitability and strong value growth.”