Online gaming and affiliate company, Cherry Group have reduced its financial forecasts for 2017 citing the impact of integrating the ComeOn! business into the group as the reason for the reduction.
The move follows Cherry exercising an option to purchase a 51% stake in ComeOn! in December 2016 after initially acquiring 49% of shares in the company in July 2016.
Cherry Group reduced its full-year revenue forecast from a previous estimate of SEK2.7bn to SEK2.5bn (€262.2m), while it also confirmed a reduction in forecasted expected earnings before interest, taxation, depreciation and amortisation from a previously reported estimate of between SEK550m and SEK600m to SEK480m.
In a statement on the companies website, Cherry confirmed: “The rapid merging of the online gaming operations to ComeOn! has resulted in intensive integration work and thus affected growth. Given that the merger has not yet reached a full positive effect on the Group’s revenue and earnings, Cherry adjusts its forecast for the full year 2017.”
The company is due to publish its interim report for the second quarter of 2017 later this week.