Scout Gaming presents preliminary Q1 revenues and the initial COVID-19 impact
Scout Gaming is monitoring the development of COVID-19 closely and act accordingly. In light of the extraordinary conditions caused by COVID-19, Scout Gaming is providing an update on preliminary Q1 revenue. Even though the current situation is unpredictable, the Group currently expects sports to resume successively during the summer.
Trading update
Scout Gaming has had a good start to the year with total revenue for the first quarter of 2020 estimated to be in the range of SEK 8.2-8.7 million (Q1 2019: SEK 3.5 million), which means a growth of 134-149% compared with corresponding quarter previous year. The revenue was positively impacted by strong underlying client activity up to the disturbance of sports in the middle of March 2020.
The impact of cancelled sports events was essentially effective from mid-March 2020, which resulted in lower turnover, expected to have affected the revenues between SEK 1.0-1.5 million. Operator Trading Index for Q1 was 1004, compared to 549 for Q1 2019, which means a growth of 83%.
Scout Gaming operates with several different revenue streams including a portion of fixed fees set in all long-term agreements.
Operational update
Scout Gaming has taken measures to protect employees and to ensure stability of operations by adjusting ways of working so that employees and critical external contractors, as far as possible, work from home. Benefitting from a new built technology and being a young company, this has been achieved with no whatsoever disruption to the business.
Scout Gaming is working hard to continue to provide an attractive sport offering to their clients. Due to the flexible nature of the business Scout Gaming has been able to provide DFS tournaments as well as Matchup duels and Player Performance Odds on local leagues that were not a part offering before the COVID-19 outbreak. In connection to the outbreak Scout Gaming also launched a full set of Esports related markets.
“Even though it is impossible to foresee the future development of this ongoing pandemic, we currently only expect temporary negative impact on our business from the ongoing Corona outbreak. Our best guess at the moment is that sports will be resuming successively during the summer. In order to maintain financial stability, we have adapted our cost base through overseeing and hence reducing mainly levels of marketing related costs, but also personnel costs as well as operating costs in general.
The current situation is by no doubt very challenging, but I’m extremely impressed in how our full organization put their maximum effort and creativity to handle this in an optimal way. I’m very positive on the outlook of Scout Gaming as we continue to agree significant deals with market leading operators.
As the market leading fantasy sports supplier, we will continue to benefit from a wide geographical landgrab and a growing product portfolio. I also see that the market for Fantasy Sports and player related content is in a favorable global position where operators seek more relevant sports content”, comments Scout Gaming's CEO, Andreas Ternstrom.
Presentation of quarterly results
Scout Gaming intends to present the full results and report for the first quarter of 2020 on Wednesday, 20th of May.
For additional information, please contact:
Andreas Ternström, CEO
Tel: +46 706 770 660
E-mail: andreas.ternstrom@scoutgaminggroup.com
About Scout Gaming Group
Scout Gaming Group is a licensed and regulated provider of B2B Fantasy Sports and pool betting. The company offers a flexible and customizable network-based Fantasy Sports solution with support for most sports and leagues through an in-house StatCenter which also provides real-time information to players. Local sports can be provided on request. The Group is headquartered in Stockholm, Sweden with development and operations in Bergen, Norway and Lviv, Ukraine and Malta. Scout Gaming is listed on Nasdaq First North Growth Market and the Certified Adviser is Redeye AB - Phone: 08 – 545 013 49, email: info@redeye.se.
This information is information that Scout Gaming Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 19.30 CET on 7 April 2020.