Financial targets

The following financial targets are to guide the Group’s activities over an economic cycle:

Sales Growth

Cherry’s target is to grow more quickly than the European gaming market over an economic cycle, driven primarily by its business areas that focus on online gaming: Online Gaming, Game Development and Online Marketing.

Since 2012, Cherry’s revenue has increased by an average of 71 percent per year, while the online casino market in Europe grew on average by 12 percent per year. In 2017, the Group’s revenue increased by 104 percent, while market growth in Europe during the year was estimated at 11 percent. The revenue increase is explained by both growth of existing customers, launches of new games and the inflow of new customers as well as acquisitions of companies. The objective is to continue to grow organically and structurally.


Cherry’s target is to increase the EBITDA margin over time and in the medium term (3-5 years) achieve an EBITDA margin of between 15 and 18 per cent.

For the full-year 2017, Cherry reported an EBITDA margin of 19.1 percent (15.8).

Capital structure

Cherry’s capital structure should allow for a high degree of financial flexibility as well as the possibility for acquisitions. The company’s target is for the equity/assets ratio to be at least 30 percent.

As at 31 December 2017, the equity/assets ratio was 34 percent (14).

Dividend policy

According to the dividend policy adopted by the Board, Cherry’s target is to distribute more than 50 percent of net profit as dividend. However, the company’s financial position, cash flow, opportunities for acquisitions and future prospects should be taken into account.

As for the 2016 financial year, Cherry AB’s Board of Directors proposes to the Annual General Meeting that no dividend be paid for the 2017 financial year.

The company has based its financial targets on the following assumptions:

  • Continued migration to online gaming.
  • The company continues to be given an opportunity to focus on the European market for online gaming and games development.
  • The company continues to be able to handle its cost structure and cope with the effects of entering regulated markets and paying applicable taxes.
  • The company’s customer offering is regarded as attractive.
  • The company retains the licences necessary for its operations.
  • No significant adverse effects occur as a result of material changes in the political, fiscal, market and administrative treatment of the Group.