Cherry posts positive Q3 results allowing room for improvement

ing its Q3 financial results, Cherry reported a group revenue increase of 165% year-on-year to MSEK567, of which organic revenue growth amounted to 30%.

The company’s online division continued to be a key driver behind the positive results, reporting revenue growth of 214%, from MSEK 143 to MSEK 448 and an EBITDA margin of 15%.

Anders Holmgren, Cherry’s Chief Executive Operator commented: "Cherry’s operations continue to develop strongly. As the industry’s most complete gaming company, our offering has a broad base and we are able to respond quickly when we perceive opportunities.”

The integration of the online gaming operations within ComeOn affected growth and profitability in the third quarter. However, Cherry affirmed that the “lions share” of the work was completed, and it expects to increase in both areas from here on out.

“In the third quarter, we unfortunately saw our largest business area lose momentum, although the new management, with its extensive experience of the industry, has taken measures to increase both growth and profitability,” Holmgren added.

Furthermore, Yggdrasil’s successful year aided Cherry’s growth, with Holmgren stating: “It is gratifying that Yggdrasil is continuing its very positive development. The third quarter of the year was another with both record revenue and earnings. “

In the first nine months of 2017, Group revenue increased by 182% year-on-year to MSEK1,644, with organic revenue growth amounting to 36%.

On 1 November 2017, Cherry revised its full-year forecast and now estimates that consolidated revenue of approximately MSEK2,200 will be generated in 2017 and EBITDA is expected to amount to MSEK400.