The Swedish gaming company, Cherry, has recorded continued strong growth and improved profitability during the first quarter of 2017.
Cherry’s Q1 2017 report saw the group’s revenue grow by 205 per cent year-on-year to MSEK 541 (177), with organic revenue growth amounting to 44%.
The company also saw profitability improved and EBITDA increased by 224per cent to MSEK 83 (26) and the EBITDA margin was 15.4per cent (14.5) with total EBIT amounting to MSEK 52 (17).
During the period, profit was recorded at MSEK 36 (17) with earnings per share before and after dilution amounted to SEK 1.21 (0.81) and SEK 1.19 (0.80) respectively.
The company’s online gaming with, ComeOn!, saw revenue increae by 282per cent to MSEK 453 (119) and EBITDA increased by 375per cent to MSEK 57 (12) with organic revenue growth of 44per cent.
In addition, performance-based marketing via Game Lounge and game development via Yggdrasil Gaming both saw revenue increases during the period.
In December 2016, in connection with Cherry calling the option to acquire the remaining 51per cent of the shares in ComeOn Malta Ltd, the Group provided a forecast to generate total revenue for the full year 2017 of between MSEK 2,600 and MSEK 2,700, with an EBITDA of MSEK 550 and MSEK 600, which remains.
Commenting on the report, Anders Holmgren, CEO of Cherry, said: “With a strong acquisition year behind us, the first quarter was mainly characterized by consolidation. At the same time, we grew as planned and with good profitability. Partnerships and synergies have enabled an even stronger focus on innovation, improved customer experience and continued growth.
“Cherry continued to develop positively during the first quarter, with revenues increasing by 205 percent to MSEK 541, of which 44 percent were from organic growth and 161 percent from acquisitions. Profitability improved and EBITDA increased by 224 percent to MSEK 83, corresponding to an EBITDA margin of 15 percent.
“All business areas performed well, with a strong contribution from gaming development – Yggdrasil Gaming and performance-based marketing – Game Lounge,” he added. “Online gaming-ComeOn! showed stable growth. During the quarter, we made significant investments in marketing, which affected earnings but created strong conditions for increased customer intake in the upcoming quarters. The acquisition of ComeOn! expands our portfolio of products and brands and creates good conditions for strong organic growth and continued international expansion.”
He conluded: “Cherry has broadened the Group’s business to cover the entire value chain within gaming. A strong organic growth and further acquisitions of entrepreneurial companies give us a unique platform to continue to create value. Overall, within Cherry we have the strengths and advantages that give us the opportunity to continue to grow faster than the market.”