ComeOn acquisition drives Cherry’s triple-digit 2016 revenue growth

Cherry has reported a triple-digit rise in online revenues for 2016, driven by a strong end to the year after the inclusion of its newly-acquired sports betting operator ComeOn for the first time.

Online revenues for the 12-month period amounted to SEK830.5m (£76.2m), an increase of 150% compared to the previous year, with EBITDA growing significantly from SEK10.9m (£1m) to SEK123.4m (£11m).

In the final quarter Cherry’s online division, which included figures from its ComeOn acquisition for the first time in Q4, saw total revenues increase 294% year-on-year to SEK440.8m (£39.5m) and EBITDA amount to SEK87.8m (£7.9m).

In Q4, ComeOn’s revenue amounted to SEK271m, a YoY increase of 29%.

The number of active online customers increased by 339% during the quarter and amounted to 310,706 (70,746). During the fourth quarter, the number of new customers amounted to 1,798,546 (91,275), thanks largely to the influx of ComeOn customers added to the Group.

Anders Holmgren, who has now been appointed as Group CEO on a permanent basisa following the departure of Fredrik Burvall, said the combination of ComeOn and Cherry iGaming ensures the company is a “serious player for the future”.

“The integration between Cherry iGaming and ComeOn continues as planned and with great success,” said Holmgren.

“The acquisition of ComeOn and the merger has resulted in a good mix of experienced entrepreneurs and strong individuals with a common vision of how the company will reach new levels.

“The strategy of continuously developing the business areas, combined with adding strategic acquisitions where entrepreneurs continue to be active in the business, is the core of Cherry’s great performance.”

Cherry added it is continuing to work towards its listing to NASDAQ Stockholm for the first half of 2017.