Cherry reports strong growth and earnings performance
Interim Report January–March 2018
Cherry has released a report covering the firm’s progress during the first quarter of 2018, manifesting all-round growth.
The report showed:
• Group revenue increased by 26 percent to SEK 681 million (541), with organic revenue growth amounting to 25 percent (44).
• Profitability improved and EBITDA increased by 131 percent to SEK 192 million (83) and the EBITDA margin was 28 percent (15).
• Profit for the period amounted to SEK 89 million (36).
• Earnings per share before and after dilution amounted to SEK 0.96 (0.24) and SEK 0.96 (0.24).
• On 1 January 2018, ComeOn acquired Get Lucky Ltd.
• On 29 January 2018, Game Lounge acquired the website Slottracker.com.
Events after the end of the period:
• On 12 April, Game Lounge acquired the SEO specialist TodaysWeb.
• On 16 April, the owners of Cherry’s senior secured bond loan 2016/2020 of up to EUR 200 million (ISIN SE0008321616), established the proposed Group internal restructuring schedule.
• On 25 April, Lahcene Merzoug was appointed new Managing Director of ComeOn.
• On 26 April, Cherry announced a revised date for its Annual General Meeting: 30 May 2018.
• On 30 April, Cherry called on the option to acquire an additional 7.5 percent of the shares in Almor Holding Ltd, including the brands Sunnyplayer and Sunmaker. Following the acquisition, Cherry holds 90.0 percent of the shares in Almor.
Cherry’s CEO commented: “We can look forward to another eventful year.”
“The first quarter of 2018 shows that Cherry’s business model yields good results. Growth continued with increased profitability, and we see good prospects for 2018 becoming a good year for Cherry’s shareholders.”
“Cherry’s business concept is to create shareholder value by owning and developing fast-growing gaming, entertainment and media companies. In 2017, we have taken steps, large and small, to strengthen existing market positions – at the same time as we have invested in the future. I am proud of the entrepreneurial power of the employees within all of the Group’s companies. This is one of the most important reasons for being able to offer our customers good products as well as for having a stable financial basis for continued development.”
“The first quarter of 2018 was a good start to the year, and I see good prospects of this year becoming an eventful one. There are ongoing efforts within Cherry’s business areas to launch several new products that we believe will create interest among existing customers. Equally important are the efforts several of the companies are making in new market segments. For our industry as a whole, 2018 will be a year with several significant events. We are seeing ongoing discussions regarding regulation of the gaming market in different countries, legislation that in various ways affects the gaming companies operating in the industry, as well as customer demand and expectations that are changing faster than ever before.”
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