Cherry: First comment Q2, right on estimates

Research Note

2017-08-24

14:21

This morning Cherry presented their report for the second quarter of 2017. The numbers came in spot-on our estimates. As the company has previously communicated the integration work between the old Cherry iGaming and ComeOn! has taken longer time than previously expected. Still, the segment saw the sales rise by 241%, 31% organic, and produced an EBIT margin of 8%. For most companies numbers like that would never be attainable. Performance-based Marketing (PBM) and Game Development continue to develop at a hefty phase and saw increasing margins and organic growth exceeding 100%. Following the report, we will look into our more long-term estimates for both PBM and Game Development. Our positive view of Cherry's investment case is still intact.

KL

Kristoffer Lindström

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