Redeye - Snowball effect imminent for Cherry?

Cherry reported a Q1 which was in line with our estimates of 95.3 million kronor (estimate 97 million kronor). EBIT resulted in a loss of -8.9 million kronor (estimate: loss of -4.8 million). The negative EBIT was burdened by higher depreciation, marketing and other expenses. The online casino continued its strong performance achieving 58.3 million kronor (expected 57.9).  Yggdrasil also continued to perform well, indicating the potential intrinsic value of this segment, with reported revenues of 1.8 MSEK (expectation 2.0 MSEK). The restaurant casino continued to act as a strong cash-flow generator which reported 35.2 MSEK (estimated 37.0 MSEK). The company continues to position itself for strong growth as a small player in the Nordic pond along with solid prerequisites to achieve profitable growth. The company still trades at a margin of safety relative to our SOTP. Read more in the analysis below.

The fulll analysis in PDF-format: http://korta.nu/-V6

This is a press release from Redeye. Read more analysis at www.redeye.se