Scout Gaming publishes Q1 2019
”The underlying activity of our customers increased by 287% compared with the corresponding quarter last year and the operator index with base in Q1 2017 amounted to 549 (142). The increase is driven by a combination of increased activity among existing customers and the launch of new customers. As the Fantasy vertical outside the US still is at an early stage, the typical customer development is strong growth from a small base, with a sharp growth gradually increasing. We also see a pattern that those who found the product, to a great extent, continue to play.
Our strategy has been to increase the number of large customers and as a consequence, increase the liquidity of the network to make an even more attractive product. We have also accelerated the process of signing distribution agreements with larger distributors, to expand the network.
Furthermore, we are actively working with launching additional fantasy sports related games to increase player volumes. After the quarter ended we launched Fantasy Match-up, which will be launched with existing clients during the year. In connection to the launch of new products, we also applied for a Malta license for sports betting as these are partly odds-based.”
Extract from CEO Andreas Ternstrom’s commentary to the interim report.
Interim period January - March 2019
- Revenue amounted to mSEK 3.5 (1.5), of which mSEK 1.9 (0.9) was net sales.
- EBITDA amounted to mSEK -14.7 (-7.8)
- Net result amounted to mSEK -16.1 (-9.1)
- Earnings per share amounted to SEK -1.2 (-0.7)
- Operator Trading Index (which illustrates the underlying client activity) increased to 549 (142), a growth of 287%
- License agreement was signed with Mexico’s second largest operator Logrand Entertainment’s newly established online brand, Strendus. Strendus.mx.com launched Scout Gaming’s product during the end of the quarter.
- Agreement stipulating deliverance of the company's gaming platform was signed with Jogaja, focusing on the Brazilian online market. Majority owner is a Swedish venture capital firm with previous experience of successful online launches in Brazil.
- Scout Gaming entered into its second contract with a customer on the Indian Fantasy Sports market. The customer, Scoring11, launched after the end of the quarter.
Events after the period
• Scout Gaming entered into an agreement with Française des Jeux (FDJ), which is the national lottery in France, and one of the largest gaming companies in the world. The agreement states that Scout Gaming and FDJ will establish a joint offer and that the companies' platforms will be integrated with each other.
• Scout Gaming has entered into two agreements that further expand the distribution network for Scout's products. The two agreements were signed with Inplaynet and Ultraplay, both of which are platform suppliers. In addition to the Scout Gaming’s Daily Fantasy Sports platform, Inplaynet intends to be the first to distribute Scout Gaming’s new “Fantasy Match-up” game.
• Scout Gaming signed an agreement with the platform supplier Digitain. The agreement allows distribution of Scout Gaming's products. Digitain is a privately-owned company that provides Omni channel solutions for online, mobile and land based operators. Digitain has over 1000 employees, 55+ partners worldwide and more than 400 land-based retail stores.
For additional information, please contact:
Andreas Ternström, CEO, Scout Gaming
Tel: +46 706 770 660
Billy Degerfeldt, CFO & Investor Relations
Tel: +46 758 16 68
About Scout Gaming Group
Scout Gaming Group is a licensed and regulated provider of B2B Daily 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 has approximately 81 staff and is headquartered in Stockholm, Sweden with development and operations in Bergen, Norway and Lviv, Ukraine. Sales, support and product management is handled from the office in Malta. Scout Gaming is listed on Nasdaq First North and the Certified Adviser is Redeye AB. Contact details: Certifiedadviser@redeye.se, +46 (0)8 121 576 90.
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 persons set out above, at 08.00 CET on 31 May 2019.