Redeye - A bright future for Cherry

Cherry reported a Q4 which exceeded our revenue expectations for both the online casino as well as the restaurant casino. Revenue resulted in 56.8 million kronor (expected: 51.3 million kronor), predominately due to high client and marketing activity. Operating income resulted in a loss of 6.6 million kronor before non-recurring expenses (estimate: loss of 5.6 million). The result was burdened by higher staff expenses than expected, non-recurring costs of around 4 million kronor, as well as high outgoing bonus payments during the quarter.The restaurant casino announced a good quarter as a result of a seasonally strong quarter, the JPC Casino acquisition and further capitalization of new payment systems. The turnover was 42.1 million kronor (expected: 41.4).

The current transaction environment in the gaming industry, the expectation of Yggdrasil’s development as well as the positive development of the online casino prompted an upward revision of estimates. Read more in the analysis below.

The full analysis in PDF-format: http://korta.nu/fy4

This is a pressrelease from Redeye. Read more at www.redeye.se.