Cherry’s interim report for Q2 2017 – A strong platform for continued profitable growth

Business News


  • Group revenue increased by 179% year-on-year to MSEK 536 (192), with organic revenue growth amounting to 37%.
  • Profitability improved and EBITDA increased by 524% to MSEK 93 (15) and the EBITDA margin was 17.3% (7.7).
  • Profit for the period amounted to MSEK 15 (8).
  • Earnings per share before and after dilution amounted to SEK 0.03 (0.04) and SEK 0.03 (0.04) respectively.
  • The acquisition of the remaining 51% of ComeOn Malta Ltd was completed and additional secured bonds of nominal MEUR 134.5 were issued.
  • 25% of the gaming technology company, Highlight Games Ltd was acquired, with an option to acquire a further 26%. The purchase price for Cherry’s initial 25% stake amounted to MSEK 27.


  • Group revenue increased by 192% year-on-year to MSEK 1,077 (369), with organic revenue growth amounting to 40%.
  • Profitability improved and EBITDA increased by 334% to MSEK 176 (40) and the EBITDA margin was 16.3% (11.0).
  • Profit for the period amounted to MSEK 51 (26).
  • Earnings per share before and after dilution amounted to SEK 0.27 (0.20) and SEK 0.26 (0.20) respectively.


  • On July 3, a share split 1:5 was conducted, regardless of series.
  • On August 17, Cherry revised its full-year forecast and now expects the Group to generate total revenue of about MSEK 2,500 in 2017 with EBITDA of about MSEK 480.


“We continue to be a profitable, fast-growing company, even if the integration of ComeOn! has not yet reached full positive effect. By further diversifying and consolidating our operations, we strengthened our platform and thus the conditions for long-term leverage. Cherry showed strong growth in the second quarter and revenues increased 179% to MSEK 536, of which 37% was organic. We continue to grow with good profitability. EBITDA increased by 524% to MSEK 93 and the EBITDA margin was 17.3%.

Game development and Performance-based marketing are the stand-out performers, but Online gaming has not quite been delivering in line with our plan. However, the Online gaming business continued to develop positively. Revenue grew by 241% to MSEK 437, with organic growth of 31%. EBITDA improved from MSEK 5 to MSEK 62 compared with the same quarter last year and the EBITDA margin increased from 4% to 14%. The rapid merging of ComeOn!’s activities has led to a strong focus on integration, affecting growth. It is worth mentioning that marketing efforts have not yet had the expected effect. At the same time, there is a high level of activity with a variety of initiatives that strengthen both the business area’s organization and the offering as a whole. We assess that the future of ComeOn! looks bright, but that integration will take a little longer than initially anticipated.

Yggdrasil Gaming had a very strong second quarter and revenue increased by 103% to MSEK 40 with an EBITDA margin of 44%. A number of new important licensing agreements were concluded and more innovative games were launched. During the quarter, Yggdrasil also went live with their games in the Italian regulated market.

Game Lounge’s operations in performance-based marketing continue to grow at a rapid pace and with good profitability. Revenue increased by 164% to MSEK 33 and the EBITDA margin was strengthened with 540% to 62%. During the second quarter, all markets had an increased number of visitors as well as new depositing customers, despite the fact that marketing efforts were less than the previous quarter.

In summary, the second quarter confirmed a continued positive trend for Cherry, and the development has been strong throughout the opening period of the third quarter. With the acquisition of 25% of the game development company Highlight Games we have diversified our operations further, while both investments and the number of acquisition candidates show a high residual potential. We look forward to further refining our portfolio of investments, which cover the entire gaming value chain.”