Scout Gaming publishes Q2 2019: Increased revenues for the start of H2
”We continue to build long-term values through agreements we entered into during the quarter, integrations we have made, as well as the products we have completed and started to launch with our partners. The effect of spring's work has as anticipated, started to have an effect after the summer in connection to the start of the major sport leagues. We have previously been somewhat behind schedule, but have caught up after the end of the quarter and are now in line with expectations of achieving a solid revenue growth during the second half of 2019.
The network effect is now starting to get visible and we are moving towards the strongest sales month in Scout Gaming's history. On our internal brand, we have seen a preliminary revenue increase of approximately 355% compared to August last year. The increase is representative of our customer base in general. The number of paying active users at our customer base has increased by about 300% compared to August 2018.
For the second year in a row, we won EGR B2B Awards for best fantasy product, which is clear proof that we are the market leader. Another example of this is our season-long Premier League game which this season has a record sum prize pool of SEK 2.5 million. The tournament has attracted nearly 10,000 registered teams and is recognized as the biggest European Fantasy Premier League tournament to date. Compared to last year's season games for the Premier League, player turnover increased almost 250%.”
Extract from CEO Andreas Ternstrom’s commentary to the interim report.
Quarter April - June 2019
• Revenue amounted to mSEK 4.0 (4.9), of which mSEK 2.3 (2.7) was net sales
• EBITDA amounted to mSEK -12.1 (-4.7)
• Net result amounted to mSEK -13.3 (-7.1)
• Earnings per share amounted to SEK -1.0 (-0.6)
• Operator trading index (which illustrates the underlying client activity) increased to 687 (409), a growth of 68%
• Scout Gaming entered into an agreement with the France state lottery FDJ, which is one of the largest gaming companies.
• Scout Gaming has entered into an agreement with Scientific Games Digital, one of the top leading global gaming suppliers. The SG Digital workforce amounts to over 1,500 members of staff across 34 offices around the world, and has an excess of 200 customers, more than 2,000 games and 40 licenses worldwide. Scientific Games has a turnover of 3 Bn USD and is listed on the Nasdaq stock exchange.
• Scout Gaming has entered into an agreement with Expressen regarding deliverance of the company's gaming platform. Expressen will gain access to a number of sports and is expected to launch during 2019. Expressen, which is part of Bonnier News, is one of the largest media houses on the Swedish market.
• Scout Gaming entered into an agreement with platform provider Digitain. The agreement stipulates the distribution of Scout Gaming's products. Digitain is a privately held company providing Omni-channel iGaming software solutions to the online, mobile and land-based verticals. Digitain has over 1,000 employees, 55+ partners worldwide, and more than 400 land-based bet shops worldwide.
• Scout Gaming Group has been granted a license by Malta Gaming Authority, which enables Scout Gaming to provide betting related services, to operators under the Maltese regulation.
• Scout Gaming conducted directed rights issues amounting to approximately 27 MSEK. Participants included Tekkorp Capital LLC, Swedbank Robur Fonder AB, Provobis Invest AB and Knutsson Holding AB among a couple of international institutional investors.
Interim period January - June 2019
• Revenue amounted to mSEK 7.6 (4.9), of which mSEK 4.2 (3.6) was net sales.
• EBITDA amounted to mSEK -26.7 (-12.5)
• Net result amounted to mSEK -29.4 (-16.2)
• Earnings per share amounted to SEK -2.2 (-1.2)
Events after the period
Preliminary revenue growth for our internal brand, which is representative for our customer base in general, is approximately 355% in August, compared with the whole of August 2018. The number of paying active users in our customer base has increased by approximately 300% compared with the whole of August 2018. This information is based on the first 29 days of August and should not be seen as a forecast, but an indication of how the quarter has started.
For additional information, please contact:
Andreas Ternström, CEO
Tel: +46 706 770 660
E-mail: andreas.ternstrom@scoutgaminggroup.com
Billy Degerfeldt, CFO & Investor Relations
Tel: +46 758 16 68
E-mail: billy.degerfeldt@scoutgaminggroup.com.
About Scout Gaming Group
Scout Gaming Group is a licensed and regulated provider of B2B Daily Fantasy Sports. 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 79 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 person set out above, at 08.00 CET on 30 August 2019.