Cherry Group lowers forecasts as ComeOn! integration continues

Cherry Group has moved to reduce its financial forecasts for the current year due to the impact of ongoing work related to the integration of the ComeOn! online gaming business.

In December of last year, Cherry exercised an option to purchase a 51% stake in ComeOn! after initially acquiring 49% of shares in the company in July 2016.

The acquisition went through in May of this year, with Cherry now owning 100% of the shares in ComeOn!

However, Cherry has reported that although business areas are performing well, the ComeOn! integration has not yet reached a “full positive impact”, which has in turn had an impact on revenue and earnings.

As a result, Cherry has moved to alter its full-year revenue forecast to SEK2.5bn (€262.2m/$309.3m), while the company said it expects to post earnings before interest, tax, depreciation and amortisation (EBITDA) of approximately SEK480m.

Cherry had made an initial revenue forecast of between SEK2.6bn and SEK2.7bn, while EBITDA was expected to amount to between SEK550m and SEK600m.

The company will publish an interim report for the second quarter of the current year later this week.