Scout Gaming publishes Q3 2019: Revenues increased 125% to mSEK 8.1
”I am delighted to look back at a successful quarter, in which we fulfilled the objective to increase revenues significantly during the second half of 2019.
During the third quarter, after an initial learning period regarding Scout’s offering, major clients have started to market our products. We have contracted and launched new clients, increased our prize pools and launched new betting related games such as our internal sportsbook, covering fantasy markets. This has resulted in all-time high revenues and improved profitability measures across the border.
Scout’s client activity has increased significantly during the third quarter, which is illustrated by the Scout Gaming operator Index that reached a new all-time high of 900. The index level corresponds to a growth of 94% compared to the same quarter last year, which included activity peaks from the Soccer World Cup.
Scout Gaming launched its first external B2B customer in the third quarter of 2017, with revenues totaling mSEK 1.6. Since then, revenues have increased fivefold as we have launched new customers, larger prize pools and new games. The focus on signing new clients has resulted in a cost level that has induced a trend of increasing losses. This trend has ended during the third quarter. We now expect successively improved earnings going forward. Volatility between quarters may continue to occur as a result of larger customer launches and events but should decrease as the revenue base grows.”
Extract from CEO Andreas Ternstrom’s commentary to the interim report.
Quarter July - September 2019
• Revenues increased to mSEK 8.1 (3.6), corresponding to a growth of 125% compared to same quarter last year
• EBITDA improved to mSEK -7.9 (-8.7)
• Net result improved to mSEK -9.5 (-11.9)
• Earnings per share amounted to SEK -0.7 (-1.0)
• Operator trading index (which illustrates the underlying client activity) increased to 900 (465), a growth of 94%, previous year contained activity related to World Cup Soccer
• In September, Scout Gaming entered into a framework agreement with Eurovision Sport, a division within the European Broadcasting Union (EBU), which is the world’s leading public service media alliance. A first targeted partner gained access and launched Scout’s product offering during the fourth quarter. The agreement stipulates that Scout Gaming will provide platform licenses to Eurovision Sport, its partners and EBU Members
Interim period January - September 2019
• Revenues amounted to mSEK 15.7 (10.0)
• EBITDA amounted to mSEK -34.6 (-21.2)
• Net result amounted to mSEK -38.9 (-28.1)
• Earnings per share amounted to SEK -2.8 (-2.3)
Events after the period ended
• In November, Scout Gaming’s product was launched with the global operator brand Betway, initially targeted towards the African market under Betway’s African licensee partner – Raging River
For additional information, please contact:
Andreas Ternström, CEO, Scout Gaming
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 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 Growth Market 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 15 November 2019.