Scout Gaming Marks 47% Drop in Gaming Revenue 

Business-to-business daily fantasy sports, fantasy betting, and sportsbook Scout Gaming Group has published its interim report covering January-June 2022. The report signaled a series of important revenue drops, including a 47% decrease in the company’s revenue from gaming operations during the second quarter. 

The Second Quarter, an “Intensive Period”

The company’s business-to-business revenue reached mSEK 1.8 ($170,000) in Q2, signaling a 30% increase compared to the same quarter in 2021. Similarly, Scout Gaming Group’s business-to-commercial revenue amounted to mSEK 2.4 ($227,400) during the same quarter, marking a decrease of 66%. The company recorded total revenue of mSEK 4.3 ($407,000), while the net result went down to mSEK -27.3 (-$2.58 million). At the same time, Scout Gaming’s interim report mentioned an EBITDA drop to mSEK -23.3 (-$2.2 million) and a decrease in earnings per share to mSEK -1.2 (-$113,770) between April-June 2022. 

The group’s chief financial officer and acting chief executive officer Niklas Jönsson spoke about the Q2 results, explaining the quarter “has been an intensive period” under which the company has initiated a series of “existential decisions.” He concluded that the group’s expenses and workforce have been “way too high compared to the revenue” created over a longer period of time. Jönsson added the company decided to change its “organizational structure and management” in order to adapt to the fresh business. 

The restructuring program that was launched during Q2 was meant to tackle all the challenges signaled in the interim report regarding the revenue drops. According to the group, the program is already working and showing results while its full effects should be visible during Q4. Scout Gaming cut its total staff by 50% since the start of the year. With only 63 employees left, the company has been trying to streamline its organization and provide better support to customers using a “more efficient delivery process.”  

Scout Gaming Went Live With bet365 and Norsk Tipping

At the end of the second quarter, the company went live with its Fantasy product on bet365, reaching over 120 markets dispersed worldwide. Plus, Norsk Tipping, the Norwegian State

Lottery Norsk Tipping also went live, marking an important strategic objective that Scout Gaming has of collaborating with international state lotteries. 

Plus, Scout Gaming’s Board also decided to launch a proposal for a rights issue worth mSEK 101 ($9.57 million). The company is currently working on the proposal. A large number of important shareholders have already guaranteed they would take part in the rights issue and continue to share the company’s vision of a positive future.