Stockholm-listed group Cherry has revealed second quarter results in line with market expectations, during a period in which the igaming firm concentrated on growth in core markets, including "significant" investment in marketing.
Group revenues in Q2 2018 increased by 41 per cent to SEK753m (£64.5m), compared to SEK536 a year ago and with organic growth up two per cent at 39 per cent.
Profit for the period was up to SEK91m (Q2 2017: SEK15m) and, during a period in which Gunnar Lind was appointed acting CEO following the departure of Anders Holmgren, EBITDA increased by 78 per cent year-on-year to SEK165m (SEK93m).
During Q2, Cherry took a further 44 per cent of shares in affiliate company Game Lounge, taking the total holding to 95 per cent of shares outstanding. A further 7.5 per cent of shares acquired in igaming firm Almor Holding took Cherry’s holding to 90 per cent of shares outstanding.
Cherry stated in its outlook that it expects the group’s largest geographic markets to “continue to develop favourably”.
Gunnar Lind, Cherry’s acting president and CEO, said: “With a revenue increase of 41 per cent, of which organic growth amounted to 39 per cent, the quarter was characterised by expansion and investment. Investments during the quarter were made primarily in the marketing of existing and new brands, and of games developed in-house by Yggdrasil and Highlight Games. Cherry has strong and broad operations meeting the market’s demand for quality in everything we deliver, and it is gratifying to note that July demonstrated that our investments have generated returns in line with our expectations.
“The second quarter of 2018 was characterised by a focus on growth, in the short term as well as long term. Investments in marketing were significant and effective. Online gaming is expanding and strengthening its position in key markets, while the business area’s new brands are also rapidly building awareness and establishing a good customer base.
“Game development and online marketing have also acted proactively through increased investment in game development, acquisitions and a clearer presence in Sweden. To me, as acting CEO, this is a secure situation providing opportunities to continue strengthening Cherry in its core markets and, in parallel, to assess complementary growth alternatives.”
