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Sweden – Scout Gaming CEO: “the company’s expenses and workforce have been way too high”

By William - 22 August 2022

Commenting on disappointing interim results for Scout Gaming Group, acting CEO Niklas Jönsson has admitted that the company’s expenses and workforce have been ‘way too high’.

Q2 revenues from Scout’s gaming operation amounted to SEK 4.2m, corresponding to a decrease of 47 per cent. Of this figure, B2B revenues made up SEK 1.8m (down 30 per cent), and B2C decreased by two thirds to SEK 2.4m.

Across the first six months of 2022, revenues from the gaming operation amounted to SEK 10.9m – a decrease of 40 per cent.

“The second quarter has been an intensive period under which I together with the management and Board have initiated and implemented many for the company existential decisions,” said Niklas Jönsson, acting CEO.

“I can conclude that the company’s expenses and workforce has been way too high compared to the revenue which have been created on a longer period of time. We have therefore changed the organisational structure and management to adapt to the new business.

“The restructuring programme which was launched during the second quarter to handle the challenges above has already given effect and full realisation of the effects will be seen in the fourth quarter.

“At that time, we will since the beginning of the year halved our work force to a total of 63 employees within the Group, in the effort to streamline the organisation and better support our customers, through more efficient delivery process.”

Niklas added: “I look forward to the future of Scout with several promising projects and integrations aimed at increased growth.

“However, it will involve a lot of work, continued streamlining and razor-sharp focus from all of us in the organisation to realise our plan.”