The governance of Cherry AB has today published the online gambling firm’s last trading statement as a Stockholm Nasdaq-listed enterprise, as Cherry transitions to new ownership, managed by private equity vehicle Intressenter Bidco.
Continuing its strong 2018 momentum, a reformed Cherry AB posts a 44% increase in full-year group revenues to MSEK 3,236 (2017: MSEK 2,252), detailing growth across its core B2C and B2B divisions.
“Cherry’s development in 2018 can be summarised with one word: excellent,” said Gunnar Lind, Cherry acting CEO. “On almost all measurements, our operations delivered in line with our expectations.”
Updating the market, Cherry details that in 2018 the company has proved itself as a diverse player within the online gambling scene, detailing double-digit growth for its Yggdrasil (B2B), ComeOn (B2C) and GameLounge (marketing) assets.
Boosted by strategic investments strengthening the group’s operational frameworks and marketing capacities, Cherry reports that group profitability improved to an EBITDA increase of 89%t MSEK 813 (2017: MSEK 429) with the company maintaining a high 2018 operating margin of 25%.
Closing 2018 accounts, Cherry governance declares group profits of MSEK 487 (2017: MSEK 110), with corporate profitability positively affected by the reassessment in value (= MSEK 50) of its 2018 Highlight Games investment.
Moving forward, the company states that on 12 February it triggered an initiation to delist all shares from the Stockholm Nasdaq.
“We now have only a few weeks’ experiences of the Swedish regulations and it is too early yet to have a clear idea of how development is progressing for Cherry and the rest of the industry,” added Lind.
“Our experience of similar changes in other countries is that the companies and brands that cope best are those with a clear digital strategy, that are at the forefront in technology and their customer relationships, and are led by entrepreneurs.
“This is the core of Cherry’s business model and the companies within our Group hold strong positions, are strongly focused on what they do and are quick to grasp opportunities.”