Stockholm-listed group Cherry has recorded a positive opening quarter thanks to improvements in its online gaming operations, including efficiencies within what had been a difficult integration of ComeOn.
A preliminary assessment shows that revenues in the first quarter of 2018 have increased to SEK675m (€64.79m), from SEK541m (€51.93m) in the corresponding period last year, with EBITDA up to SEK188m (€18.04m) from SEK83m (€7.97m).
EBITDA margin for the quarter is expected to amount to 28 per cent.
“The reason for the better than anticipated development is primarily attributed to a continued improvement within the business area online gaming,” Cherry stated.
“During the quarter, several brands in the business area enjoyed favourable market growth, which in combination with the ongoing focus on a more efficient organisation of ComeOn operations, resulted in a better development than anticipated by the Cherry management.
“Further, the other business areas, mainly game development and online marketing, reported a good development, well in line with the anticipation for the first quarter of 2018.”
Difficulties with the integration of ComeOn, bought in the first half of last year for €280m, saw Cherry’s operating profits for 2017 fall eight per cent from SEK125m in 2016 (€12.5m) to SEK110m (€11m).
Cherry presents its interim report for January–March 2018 on May 3.