SBC News Cherry AB reports strong 2016 opening recording top-line growth across all divisions

Cherry AB reports strong 2016 opening recording top-line growth across all divisions

fredrickbuvall
Fredrik Burvall

Stockholm-listed European gambling operator Cherry AB has declared a strong opening to its 2016 performance reporting an 86% group revenue uplift to SEK 177 million (Q1 2015: SEK 95 million).

Updating the market on its Q1 2016 performance (period ending 31 March), Cherry would declare growth across all top-line metrics, as the company improved EBITDA considerably to SEK 25 Million (Q1 2015: SEK-4.6 million). Group profits after tax would be posted at SEK 17.5 million, as Cherry reverses 2015’s corresponding SEK 11.8 million loss.

The operator continues to see strong growth in its online gambling division, which grew by 188% reporting earnings of SEK 16.5 million.

The operator’s online growth has been further supported by a significant improvement in subsidiary games content developer Yggdrasil performance which reported earnings increase of 519% to SEK 7.9 million.

Cherry governance completes a busy Q1 2016 period, which saw the company complete its acquisition of Malta based European affiliate gambling network Moorgate Media Ltd.

Further M&A activity saw Cherry governance announce that it had acquired a 49% stake of common shares in European igaming operator ComeOn Malta, with the company seeking to further bolster its position in core Scandinavian markets.

Fredrik Burvall, CEO  of Cherry AB commented on 2016’s opening

“Cherry continues to deliver according to its strategy, which combines organic growth with strategic acquisitions. The first quarter showed further strong growth and a significant increase in profits. During the first quarter, the Group’s growth amounted to 86 percent. Cherry’s online activities continue to grow very strongly and now account for 78 percent (63) of Group sales. They are also expected to grow faster than the market. As announced previously, Cherry has applied for a listing on the Nasdaq Stockholm. A listing is a large and comprehensive challenge and has, because of the acquisition of ComeOn, been prioritised downwards. However, resources are now available for this important project and the goal remains to be listed during 2016.”
“We look forward to the rest of 2016 with excitement. Our ambition is to continue to grow faster than the market and we are well prepared to do so, both through organic growth and acquisitions. Our strategy and our diversified business areas create very good conditions for continued strong expansion, strong profitability and strong growth of value. We look forward to continue spreading the joy of playing – both online and at the pub!”

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