Stockholm-listed online gambling operator Cherry AB is feeling confident that its 2018 first quarter revenue will once again beat analysts’ expectations.
In a statement, Cherry forecasts its revenue will expand by 24.8 percent to SEK675 million (US$80.27 million) in the first three months of the year compared to the SEK541 million ($64.35 million) it reported in the same period in 2017, thanks to a “continued improvement” in its online gambling segment.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) during the first quarter was up SEK188 ($22.36 million), more than double than the SEK83 million ($9.87 million) during the prior year period.
“During the quarter, several brands in the business area enjoyed favorable market growth, which in combination with the ongoing focus on a more efficient organization of ComeOn operations, resulted in a better development than anticipated,” the Swedish company said in a statement.
Cherry acquired ComeOn to boost its Nordic market presence in 2016. ComeOn holds licenses in Malta, the UK and Curacao, and operates brands including ComeOn.com, Mobilbet.com, CasinoStugan.com, folkeautomaten.com, Suomikasino.com, GetLucky.com and Kasyno.pl. The sites boasted a combined active customer list of over 133,000 as of December 2015.
The other business areas, mainly game development and online marketing, were “well in line with the anticipation for the first quarter of 2018,” according to Cherry.
Aside from robust earnings, Cherry also saw a slight movement of people in the company. In January 2018, former chief executive Fredrik Burvall made a surprise exit from the company due to “family reasons.” Burvall’s departure from the company paved the way for the promotion of Anders Holmgren as acting CEO.
In February 2018, Holmgren was given full leadership duties in Cherry AB. The new CEO made some appointments, including a new executive operating team at ComeOn, to further boost the company’s revenues.
Cherry said that it will present its interim report for January–March 2018 on May 3.