Stockholm-listed online gambling group Cherry AB continues its strong 2018 momentum, reporting a further trading quarter driven by organic growth, delivering double-digit increases across its core metrics and KPIs.
Publishing its Q3 trading update (period ending 30 September), Cherry reports a group revenue increase of 58% to MSEK 899 (Q3 2017: MSEK 567), with the firm delivering year-to-date revenues of MSEK 2,332 up 42% on YTD 2017’s MSEK 1,644.
“Investments in marketing and operations strengthen the Group’s development both short and long-term. Cherry’s strategy of maintaining proximity to all parts of the gaming market and end customers is crucial to our continued growth. This allows us to act quickly and invest resources where we see that such measures will provide the best return” details Acting Cherry AB Chief Executive Gunnar Lind on the trading update.
Cherry maintains a diverse commercial pipeline, with its Yggdrasil B2B gaming content, ranked amongst the highest performing inventory for its European customers.
“Yggdrasil’s games are market leaders in terms of quality, resulting in agreements with several major gaming companies, including 888 Holdings and Tipsport and, in October, national operators Svenska Spel, ATG and Veikkaus” details Lind
Yggdrasil momentum is supported by Cherry’s ComeOn B2C division which continues to improve under a new business strategy and restructure brought into effect just over a year ago.
The Group-wide improvements would see Cherry Profitability and EBITDA increased by 130% to MSEK 258 (Q3 2017: MSEK 112), with the company delivering a YTD earning of MSEK 615 (YTD 2017: MSEK 288).
“There are several bright points in development in the third quarter, and I particularly want to highlight the favourable development in Online Gaming. ComeOn has succeeded very well with the broad plan of action that was brought into effect just over a year ago. All employees are making a tremendous effort and the company is now able to use more of its time and energy to establish even stronger positions in existing and new markets like in Poland, as well as with new brands such as Blitzino and PZBuk”
Confident of delivering on its full-year 2018 corporate expectations, Cherry governance declares Q3 profits of MSEK 188 combined with YTD profits of MSEK 367.
Moving forward Cherry AB, will seek to restructure its governance team following the Q3 directorial departures of Anna Bergius and Claes Ruthberg, as the company seeks to enter its re-regulated Swedish home online gambling market, whilst eyeing international expansion opportunities within Europe and the US.