Scout Gaming year-end report: foundation for future growth
” Scout operator trading index (consisting of total income from Scout Gaming's customers) for the fourth quarter amounted to 625, which is an increase of 242% compared with the corresponding quarter last year. Compared with the previous quarter, the increase is approximately 34%. Net sales for the full year increased from SEK 3.1 m to 7.1. Gambling within fantasy sports is still a premature market outside the US. However, we see a significant increase in demand from both operators and end users, which is very satisfactory.
Growth will be driven by additional launches, but also increasing activity on operators who’ve already launched our products. We continuously add new sports and leagues as demand increases. But, the most important is that we, through the agreements we signed in 2018, have laid the foundation for strong growth going forward, with this mentioned, we expect a solid increase in revenues during the second half of 2019.
We have previously experienced delays in launches. However, after the year end, there has been a sharp shift in how quickly customers launch with Scout Gaming's products. At the end of February we launched both Logrand Entertainment and Dafabet, where the respective agreements were signed in connection to the year end. During the end of the first quarter, GML Interactive is expected to launch on the Stoiximan brand. Furthermore, Betsson is expected to launch during the spring. In addition, the brands Veerbet and Time Scores, Knockout Gaming, WeAreCasino, Jogajà, Scoring 11 and Luckia are being integrated and are expected to launch during the first half of 2019”
Extract from CEO Andreas Ternstrom’s commentary to the Year-End Report.
Events during the period
• Operator trading index (which illustrates the underlying client activity) increased to 625 (183), a growth of 242%
• Partner agreements were entered into with Metric Gaming and Milestone Entertainment, focusing on the American market. In addition, a distribution agreement was conducted with WeAreCasino, primarily aimed at the Asian market
• A directed share issue was carried out during the quarter. The offering was subscribed by Swedbank Robur AB, Novobis AB, Knutsson Holding AB, Isoquant Holding AB, Naxs AB and Lars Wingefors AB, among others
• Scout Gaming won "Best DFS Product" at the SBC Awards 2018
• Signed licensing agreement with the tier 1 operator Dafabet for the delivery of Scout Gaming's Fantasy Sports and pool betting platform. Licensing agreements were also signed with Knockout Gaming and Fortuna Connections, which hold the Time Scores and Veerbet brands
Events after the period
• Scout Gaming entered into a licensing agreement with Logrand Entertainment Group for the Mexican market. The agreement gives Logrand access to Scout Gaming's gaming platform. A licensing agreement with Jogajà towards the Brazilian market was signed after the end of the year where Jogajà will operate as a white label of Scout Gaming. An agreement with Scoring 11 for the Indian market was also signed
Fourth quarter: October - December 2018
• Net sales increased to SEK 1.7 M (0.8)
• EBITDA amounted to SEK -15.8 M (-12.2)
• Net result amounted to SEK -17.8 M (-11.4)
• Earnings per share were -1.4 kr (-1.2)
Full year: January - December 2018
• Net sales increased to SEK 7.1 M (3.1)
• EBITDA amounted to SEK -37.0 M (-22.4)
• Net result amounted to SEK -45.8 M (-23.2)
• Earnings per share were -3.6 kr (-3.2)
For additional information, please contact:
Andreas Ternström, CEO
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 80 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 28 February 2019.