Cherry AB reports widespread growth despite ComeOn restructure

Despite lowering its full-year 2017 corporate forecast last week, Stockholm-listed online gambling group Cherry AB has reported ‘widespread growth’ across its assets for its Q3 2017 trading update (period ending 30 September).

Improved player activity throughout its verticals, sees Cherry report a 165% increase in group revenues to SEK 567 million (€58 million – Q3 2016: SEK 214 million).

Cherry’s strong revenue momentum, would see the company triple its period group EBITDA to SEK 112 million (€11 million – Q3 2016: SEK 31 million).

Closing its Q3 2017trading, Cherry governance would declare period operating profits of SEK 41 million (€4 million).

For its year-to-date performance, Cherry has delivered 182% increase in group revenues of SEK 1.6 billion, combined with a corporate EBITDA of 288 million (€29 million – Q3 2016: SEK 71 million).

Updating investors, Cherry governance stated that the company was continuing to restructure its operations with a view of maximising its revenue channels and ‘enhancing group profitability’.

Key initiatives undertaken include a restructure of acquired asset ComeOn’s senior management team, with changes expected to be announced shortly.

Commenting on Q3 2017 corporate performance Anders Holmgren, Chief Executive of Cherry AB, said: “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.

“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.

“The integration of the online gaming operations within ComeOn continued to affect growth and profitability negatively in the third quarter; we have continuously reviewed the integration process within the business area and can affirm that the lion’s share has been completed.”

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