Scout Gaming publishes Q4 2020: Revenues increased 69% to SEKm 16.9, EBITDA improved to SEKm -5.8, positive cashflow from operating activities
“We continue to undergo strong growth, revenues increased by 69% to SEK 16.9 million during the fourth quarter and during the full year 2020, total revenue base amounted to SEK 46.9 million. During the full year, total revenue base thus grew by 84 percent, despite a strong negative impact from COVID-19 at the end of the first and sizable parts of the second quarter - when the global sports calendar was halted. In a longer perspective, COVID-19 has resulted in a faster pace of digitalization in general and for companies operating in the entertainment sector in particular, which has benefited Scout Gaming.
Scout Gaming continues to meet strong demand at the same time as we have so far only touched the long-term potential. We have updated our internal assessment of the potential size of the European fantasy sports market and currently estimate it to amount to between SEK 5.5-7.0 billion at Gross Gaming Revenue level, which means approximately 2-3% of the entire total online gaming market in Europe. It is an attractive market and we do everything we can to consolidate and expand our position to competitors.
The Scout Gaming's Operator Index, which measures the underlying customer activity, amounted to 2,436, which is an increase of approximately 135 percent compared with the corresponding quarter last year.
EBITDA improved from SEK -8.1 million to SEK -5.8 million. Cash flow from operating activities improved from SEK -2.6 million during the fourth quarter of the previous year, to SEK 0.2 million during the fourth quarter of this year. We were less aggressive in our marketing costs, which primarily relate to guaranteed prize pools in comparison with the third quarter, in order to ensure that we get value for the investments we make in these, and it is gratifying to see that this theorem holds and that we reached an all time high for our operator trading index. Going forward, we are expected to be more aggressive regarding this marketing related expense. In connection with this, we also continue to invest heavily in product development, to ensure high future growth.”
Extract from CEO Andreas Ternstrom’s commentary to the year-end report.
Fourth Quarter: October - December 2020
• Revenues increased to mSEK 16.9 (10.0), corresponding to a growth of 69% compared to same quarter last year
• EBITDA improved to mSEK -5.8 (-8.1)
• Net result was mSEK -13.9 (-13.3)
• Earnings per share amounted to SEK -0.7 (-1.4)
• Operator trading index (which illustrates the underlying client activity) increased to 2436 (1035), a growth of 135%
Full year: January - December 2020
• Revenues increased to mSEK 46.9 (25.7)
• EBITDA was mSEK -39.2 (-42.8)
• Net result was mSEK -54.6 (-52.2)
• Earnings per share amounted to -3.1 kr (-3,8)
Events after the period ended
• Scout Gaming has launched another product for its award-winning portfolio. The Pick'em Jackpot game combines traditional sports knowledge with a jackpot. The game was made available to Fanteam users in mid-January and will be available for our B2B network shortly
• Scout Gaming has entered into an agreement with AB Trav & Galopp, ATG (the Swedish Horse Racing Totalisator Board), Sweden’s largest gaming operator measured by turnover. The companies have agreed to jointly launch Scout Gaming's award-winning DFS product on ATG.se with a soft launch aimed at the second quarter 2021, followed by a wider marketing push in the third quarter, in time for the start of English Premier League and other major European sport leagues
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: +46 707 581 668
E-mail: billy.degerfeldt@scoutgaminggroup.com.
About Scout Gaming Group
Scout Gaming Group is a multiple award-winning licensed and regulated premium provider of B2B Fantasy Sports & Betting. The company offers a flexible and customizable network-based Fantasy Sports solution coupled with sport game innovations such as Player Matchups, Player Odds & Pick’em Jackpot. The Scout Gaming Platform (SGP) has support for all major sports and leagues & delivers a unique real-time entertainment experience. The Group has 100+ employees and is headquartered in Stockholm, Sweden with development and operations in Bergen, Norway, and Lviv, Ukraine and Malta. Scout Gaming is listed on the 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 persons set out above, at 08.00 CET on 26 February 2021.