Cherry delivers 89 percent increase  EBITDA during 2018

News on 13 Feb 2019

Cherry AB’s latest annual report for full year 2018 details a substantial increase in consolidated revenue, profit and EBITDA.

Key performance highlights for the 12 months ending December 31, 2018 include:

Consolidated revenue increased by 44 percent to SEK 3,236 million (2017: SEK 2,252 million), of which organic growth amounted to 3 percent. Corporate acquisitions contributed 1 percentage point and currency 8 percentage points.

Profitability improved and EBITDA increased by 89 percent to SEK 813 million (SEK 429 million) and the EBITDA margin was 25 percent (2017: 19 percent).

Profit for the period amounted to SEK 487 million (2017: SEK 110 million).  The value reassessment of Cherry’s Highlight Games subsidiary positively affected Profit by SEK 50 million.

Earnings per share before and after dilution amounted to SEK 4.45 (2017: SEK 0.53) and SEK 4.44 (2017: SEK 0.53) respectively.

Acting CEO, Gunnar Lind:

“Cherry’s development in 2018 can be summarized with one word: excellent. On almost all measurements, our operations delivered in line with our expectations.”

Looking to the future, Our readers will recall European Entertainment Intressenter BidCo AB’s (“EE Intressenter”) public cash offer of SEK 87 per share to Cherry AB shareholders. EE Intressenter is a company jointly controlled by a consortium consisting of Bridgepoint Advisers Limited, acting as manager for and on behalf of, Bridgepoint Europe VI Fund, major shareholders in Cherry AB and others.

EE Intressenter holds, at present, approximately 98.2 percent of the total number of shares in Cherry and will initiate a compulsory acquisition procedure regarding the remaining shares, after which application will be made to have all shares delisted.

“I would like to thank all of the shareholders, employees, partners and other stakeholders who have participated in Cherry’s journey thus far,” Gunnar Lind, Acting CEO for Cherry AB, said. “I am convinced that Cherry and its Group companies will remain significant players in the gaming and entertainment industry for many years to come and I look forward to following developments.

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