Press Releases
Cherry Interim Report January–March 2018
Strong growth and earnings performance
FIRST QUARTER
• Group revenue increased by 26 percent to SEK 681 million (541), with organic revenue growth amounting to 25 percent (44).
• Profitability improved and EBITDA increased by 131 percent to SEK 192 million (83) and the EBITDA margin was 28 percent (15).
• Profit for the period amounted to SEK 89 million (36).
• Earnings per share before and after dilution amounted to SEK 0.96 (0.24) and SEK 0.96 (0.24).
• On 1 January 2018, ComeOn acquired Get Lucky Ltd.
• On 29 January 2018, Game Lounge acquired the website Slottracker.com.
EVENTS AFTER THE END OF THE PERIOD
• On 12 April, Game Lounge acquired the SEO specialist TodaysWeb.
• On 16 April, the owners of Cherry’s senior secured bond loan 2016/2020 of up to EUR 200 million (ISIN SE0008321616), established the proposed Group internal restructuring schedule.
• On 25 April, Lahcene Merzoug was appointed new Managing Director of ComeOn.
• On 26 April, Cherry announced a revised date for its Annual General Meeting: 30 May 2018.
• On 30 April, Cherry called on the option to acquire an additional 7.5 percent of the shares in Almor Holding Ltd, including the brands Sunnyplayer and Sunmaker. Following the acquisition, Cherry holds 90.0 percent of the shares in Almor.
Comments by the CEO
We can look forward to another eventful year
The first quarter of 2018 shows that Cherry’s business model yields good results. Growth continued with increased profitability, and we see good prospects for 2018 becoming a good year for Cherry’s shareholders.
Cherry’s business concept is to create shareholder value by owning and developing fast-growing gaming, entertainment and media companies. In 2017, we have taken steps, large and small, to strengthen existing market positions – at the same time as we have invested in the future. I am proud of the entrepreneurial power of the employees within all of the Group’s companies. This is one of the most important reasons for being able to offer our customers good products as well as for having a stable financial basis for continued development.
The first quarter of 2018 was a good start to the year, and I see good prospects of this year becoming an eventful one. There are ongoing efforts within Cherry’s business areas to launch several new products that we believe will create interest among existing customers. Equally important are the efforts several of the companies are making in new market segments. For our industry as a whole, 2018 will be a year with several significant events. We are seeing ongoing discussions regarding regulation of the gaming market in different countries, legislation that in various ways affects the gaming companies operating in the industry, as well as customer demand and expectations that are changing faster than ever before.
STRONG DEVELOPMENT IN THE BEGINNING OF 2018
The Group’s revenue in the first quarter of 2018 increased by 26 percent, of which 25 percent was organic growth. EBITDA increased by 131 percent, from SEK 83 million to SEK 192 million. In addition to the continuous work to strengthen profitability, this improvement is mainly due to ongoing efficiency enhancement measures within ComeOn, a company in the business area Online Gaming. The business area’s revenue for the first quarter increased by 18 percent compared with the corresponding quarter in 2017, while earnings improved significantly, from SEK 57 million to SEK 143 million, an increase of 151 percent.
After the end of the period, ComeOn has appointed Lahcene Merzoug new Managing Director. I am pleased that the company has found a strong candidate for this important position and look forward to welcoming Lahcene. I am also glad that the Interim Managing Director, Tomas Johansson, will stay on as advisor to the Cherry Group, supporting Lahcene and the company’s management group as well as contributing to strengthening and broadening Cherry’s position as an innovating and fast-growing company with operations in gaming, entertainment and media.
All companies are developing well, and I particularly want to highlight the turnaround that ComeOn’s new management has accomplished in a short time, as well as Yggdrasil Gaming, which has continuously delivered games and tools that have set the standard, and which all established gaming operators must have in their offering. Yggdrasil had a significant market presence at the industry’s biggest meeting event, ICE, in London, and many took the opportunity to play the company’s new table game in a 3D environment. The third company that is developing particularly strongly is Game Lounge, which has strong organic growth and has made some additional acquisitions, such as Slottracker.com and, in April, search engine specialist TodaysWeb.
In the coming months, Highlight Games will launch its game, SOCCERBET, in Italy, which is one of Europe’s largest gaming markets. The game is a sportsbook based on a unique combination of filmed clips from European league football and can be played both online and in game stores, closely approximating the feeling of watching live football matches. We expect the game to reach both existing and new customer categories and to be introduced in additional countries.
INNOVATIVE EFFORTS
With its curiosity and market expertise, Cherry will strengthen and develop its position within gaming, entertainment and media. We want to be the obvious partner for entrepreneurs working in this industry. Cherry can offer a strong platform and support for ideas and products, from start to market launch as well as establishment of a sustainable and long-term business. I look forward to participating in Cherry’s ventures to create many new business opportunities and companies that will continue to lead the development as Cherry has done since its inception in 1963.
MARKET OUTLOOK
The gaming market is currently growing strongly and Cherry estimates that demand in the Group’s largest geographic markets will continue to develop favourably. The Group continuously studies conditions for new business within the related business areas and geographic markets in and outside of Europe.
The Group’s focus is on creating shareholder value by being an active participant in the development of new and existing companies within the gaming, media and entertainment sector. The objective is for the companies to become market leaders in their respective areas by building their core values of entrepreneurship, responsibility and commitment. These are important prerequisites for the Group to be able to achieve its financial targets and to continue its successful profitable growth, through both organic growth and acquisitions, in existing and new verticals, and geographic markets.
eSports
EXCITEMENT GROWS AS 2024 PUBG MOBILE GLOBAL CHAMPIONSHIP GRAND FINALS NEAR
- The countdown is on for the 2024 PUBG MOBILE Global Championship Grand Finals, live in London from December 6th to 8th, for the first time ever in the UK.
- 33 teams have been eliminated, and 16 teams are ready to battle for the crown and a share of the $3,000,000 prize pool at the Grand Finals
- Fans can tune in to witness the culmination of this year’s PUBG MOBILE Esports cycle on the official PUBG MOBILE YouTube, TikTok, Facebook and Twitch channels
- Exclusive to the 2024 PMGC the Royale Pass A10 Tundra Knight Set will be awarded to the Grand Final Champions, whilst the Raven Scepter will go to the Grand Finals MVP player
The countdown is on for the 2024 PUBG MOBILE Global Championship (PMGC) Grand Finals, where the world’s elite mobile esports teams will go head-to-head in an electrifying showdown. In less than a week, fans around the globe will witness three days of unrelenting competition as the final 16 teams battle it out for their share of the mighty $3,000,000 prize pool, the largest in UK esports history. Kicking off on December 6th in London’s ExCeL Centre, this marks the first time the PMGC Grand Finals will take place in the UK, promising an unforgettable live event filled with epic plays, high-stakes drama, and the crowning of the 2024 PUBG MOBILE Global Champions.
Since October, 48 teams have embarked on the journey to the 2024 PMGC Grand Finals, battling fiercely through the Group Stage, Survival Stage and Last Chance Stage. After months of high-stake competition, 33 teams have been eliminated, leaving only the very best to advance to the final showdown, including 9 teams from the Group Stage, 6 from the Last Chance Stage, and 1 Host Region Invite, each earning their place through grit, strategy, and unforgettable gameplay.
Now, the final 16 teams are poised to showcase their brilliance on the world stage in London. Among the contenders is Alpha7 Esports from Brazil, whose bold and aggressive strategies have made them fan favourites – coming fresh off their victory in the 2024 PUBG MOBILE World Cup (PMWC). Joining them is Falcons Force who scored a huge 44 points more than their fellow teams during the Last Chance Stage, and will be ones to watch out for as they attempt to recreate this in the Grand Finals. Alongside these giants, Nigma Galaxy will also be looking to step into the spotlight, being the first MEA team to qualify for the PMGC Grand Finals in two years.
The Host Region team, Guild Esports will also be looking to prove themselves a worthy contender for the title of 2024 PUBG MOBILE Global Champions — a mighty challenge when considering such strong opponents.
2024 PMGC Grand Finals Teams:
- Alpha7 Esports
- 4Merical Vibes
- DPlus
- DRX
- Falcons Force
- INFLUENCE RAGE
- Insilio
- NAVI
- Nigma Galaxy MEA
- Regnum Carya Bra Esports
- Team Spirit
- Tong Jia Bao Esports
- ThunderTalk Gaming
- The Vicious LATAM
- VOIN DONKEY ID
- Guild Esports (Host Region Invite)
In addition to taking the lion’s share of the $3,000,000 prize pool, alongside the 2024 PMGC title and trophy, the Global Champions will also secure the Royale Pass A10 Tundra Knight Set, designed exclusively for the 2024 PMGC. Accompanying this stylish reward is the Raven Scepter, which will be granted to the winner of the Grand Finals MVP title. These majestic offerings celebrate the end-of-year competition, rewarding the top team and player for their continued efforts throughout the year.
Celebrating the 2024 PMGC with the community, players can get their hands on a unique theme song, avatar, and lobby theme from now until December 8th. Login to PUBG MOBILE and head over to the events tab to learn more!
James Yang, Senior Director of Global Esports at Level Infinite, said: “The PMGC has always been the pinnacle of mobile esports, and this year is no exception. With incredible talent, high-stakes matches, and unforgettable moments at every stage, the 2024 Grand Finals are shaping up to be our most thrilling yet. Hosting the Grand Finals in London for the first time is a historic milestone, bringing fans a world-class esports experience in the heart of the UK. We can’t wait to see which team will rise above the rest and make history.”
For those unable to attend in person, fans can watch the unparalleled action live, starting from the 6th of December at 11:00am GMT by heading to the official PUBG MOBILE Esports’ official YouTube, TikTok, Facebook and Twitch channels.
Tickets to the Grand Finals at the London ExCel Centre can be purchased at universe.com.
Latest News
Scientific Games’ Newest Systems Technology to Power Retail and Digital Sales for North Dakota Lottery
Advanced Enterprise System Will Connect Multichannel Experiences, Including iLottery, Loyalty, Player Account Management and CRM
Scientific Games’ signed a new technology contract with the North Dakota Lottery to implement the company’s most advanced omnichannel system solutions. The Lottery selected Scientific Games’ integrated solution to power retail and digital sales following a competitive process, awarding the global lottery company a new six-year contract with a two-year extension option. As the industry’s fastest-growing systems provider, Scientific Games has successfully executed nearly 40 lottery systems implementations and conversions since 2016.
Built upon key components of Scientific Games’ Momentum ecosystem, a new, advanced enterprise gaming system is at the core of the tech solution developed for the North Dakota Lottery. The integrated ecosystem features the AEGIS central gaming system, a premiere digital platform offering a single integrated solution for iLottery and Loyalty, and innovative retail technology, including award-winning self-service terminals.
The company’s industry-leading player account management solution, SG PAM, a high-performance customer relationship management solution, superior bonusing engine and upgraded achievement-based rewards program, will continue to drive North Dakota player engagement with a completely new user experience (web and mobile).
Lance Gaebe, Director of the North Dakota Lottery, said, “Our goal was to modernize our technology so that our players can enjoy fluid experiences between retail and digital. We also wanted to work with the tech partner that gave us the best technical solution for the North Dakota Lottery to responsibly grow sales and contributions to our state programs in the coming years.”
The new contract is the third time North Dakota has chosen Scientific Games as its system vendor, highlighted by 33% sales growth in the past 10 years. iLottery sales increased 36% from fiscal year 2022 to 2023.
Scientific Games began a 20-year technology partnership with the North Dakota Lottery when its first Powerball tickets were sold in 2004, launched its iLottery program in 2014 and mobile app in 2018. The company currently provides the Lottery with an online/mobile Pick & Click draw game purchase program, as well as a Players Club where members earn points and redeem rewards through a Points for Prizes online store and Points for Drawings program.
John Schulz, President, Americas & Global Instant Products, said, “We’ve been there since the beginning with the North Dakota Lottery, and our technology has served the Lottery very well over the past two decades. Our teams have worked hard to build a strong partnership through service excellence, and they deeply understand the North Dakota Lottery’s unique business. Now, we’re taking that partnership to the next level with our Momentum ecosystem.”
Scientific Games provides retail and digital games, technology, analytics and services to 150 lotteries in 50 countries around the globe.
Asia
Nazara announces five investments totalling INR 196 Crores to drive growth across Gaming and Entertainment
Nazara Technologies Limited (BSE: 543280 | NSE: NAZARA), India’s only listed diversified gaming and sports media company, has unveiled a series of strategic investments aimed at solidifying its position in the gaming and entertainment ecosystems.
Nazara has announced new Investments in Funky Monkeys & Learntube.ai
Nazara has expanded into physical entertainment with the acquisition of a 60% stake in Funky Monkeys Play Centers Private Limited, a leader in indoor soft play centers for children, for INR 43.7 crores. Funky Monkeys operates 11 centers across India, offering interactive play experiences for children.
Co-founders of Funky Monkeys, Binita Putcha and Sanjay Ghadiali, said: “We are excited to join hands with Nazara, whose vision for digital and hybrid entertainment aligns closely with ours. With Nazara’s expertise and resources, we are confident we can scale Funky Monkeys and bring even more joy to children and families across India. We also see synergies with digital IP’s owned by Nazara such as Kiddopia and will work to maximise these opportunities”
Nazara will also invest INR 4.2 crores for a 4.7% stake in Learntube.ai, an AI-powered platform revolutionizing education with 1:1 interactive and gamified learning. Catering to over 20 lakh learners, LearnTube is the world largest personalised learning platform that offers affordable, interactive gamified learning experiences for professional skilling.
“LearnTube’s collaboration with Nazara is a bold step forward in reshaping professional learning and interactive media. We are excited to combine forces to lead innovation on a global scale,” said Shronit Ladhani, Co-founder, LearnTube.
Nazara has Increased its shareholding of existing companies
Nazara will invest INR 148 crores in its existing subsidiaries including Sportskeeda, Nodwin Gaming, and Datawrkz to increase its ownership in them and support their growth.
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Nodwin Gaming: Nazara will invest INR 64 crores through subscription of Optionally Convertible Preference Shares to bolster Nodwin’s growth. The funds will support Nodwins expansion, enhance its intellectual properties (IPs), and strengthen its footprint in emerging markets.
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Absolute Sports (Sportskeeda): Nazara will invest INR 69 crores to purchase shares arising from exercise of ESOPs from the Sportskeeda management to increase its stake to 100% in the company making it a wholly owned subsidiary.
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Datawrkz: Nazara granted in-principle approval for an investment of INR 15 crores in Datawrkz through the subscription of Compulsorily Convertible Cumulative Preference Shares to support ongoing growth of Datawrkz
Speaking on these investments, Nitish Mittersain said: “Nazara is committed to building the largest diversified gaming and entertainment platform out of India and many of our initiatives announced today are geared towards propelling profitable growth in these strategic areas of our interest.”
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