Cherry outperforms Q1 profit forecast with revenues up 26%
Group attributes strong performance to ComeOn turnaround and Yggdrasil growth
Cherry Group this morning reported Q1 revenues of SEK 681m (£56.5m), up 26% on the previous year, and 1% higher than its projected figures for the quarter.
EBITDA rose 131% to SEK 192m (£15.9m) with a margin of 28%.
Group CEO Anders Holmgren highlighted the performance of B2B arm Yggdrasil as a main driver for growth.
Holmgren also hailed the quick turnaround of Cherry’s online gambling business, ComeOn after it faced integration set-backs last year.
ComeOn saw revenues for the quarter increase by 18% to SEK 536m (£44.4m) with an EBITDA margin of 27%. Casino accounted for 85% of ComeOn’s revenues, with sportsbook share dropping 2% to 15%.
Marketing expenditure for the period was down 12% to SEK 177m (£14.7m) while depositing customers grew by 25% on the previous year.
Yggdrasil revenues were up 72% during the quarter to SEK 57.6m (£4.8m). Holmgren attributed the growth to increased business with existing operator partners and launching new games.
Speaking to investors this morning, Holmgren outlined plans for the recently acquired virtual sports supplier High Games to launch a unique sportsbook game in Italy dubbed SOCCERBET.
The product will integrate clips from European League matches to emulate the feeling of watching a live match, and it will be available online and in retail venues.
During the quarter the operator appointed Lahcene Merzoug as ComeOn’s new managing director.