Scout Gaming has provided an update on preliminary Q1 revenue prior to a full report on 20 May. Despite the current unpredictability of the situation, the Group currently expects sports to resume successively during the summer.
In its trading update, Scout Gaming reported a good start to the year with total revenue for the first quarter of 2020 estimated to be in the range of SEK 8.2-8.7m (Q1 2019: SEK 3.5m), equating to a growth of 134-149 per cent compared with the corresponding quarter in the previous year. The revenue was positively impacted by strong underlying client activity up to the disturbance of sports in the middle of March 2020.
The impact of cancelled sports events was essentially effective from mid-March 2020, which resulted in a lower turnover, expected to have affected revenues between SEK 1.0-1.5m. Operator Trading Index for Q1 was 1004, compared to 549 for Q1 2019, which means a growth of 83 per cent. Scout Gaming operates with several different revenue streams including a portion of fixed fees set in all long-term agreements.
In its operational update, Scout Gaming announced the measures used to protect employees and to ensure stability of operations by adjusting ways of working so that employees and critical external contractors, as far as possible, work from home. Benefitting from a new built technology and being a young company, this has been achieved with no disruption to the business whatsoever.
Scout Gaming is working hard to continue to provide an attractive sport offering to their clients, providing DFS tournaments and Matchup duels and Player Performance Odds on local leagues that were not a part offering before the COVID-19 outbreak.
In connection to the outbreak, Scout Gaming also launched a full set of esports related markets. Scout Gaming’s CEO, Andreas Ternstrom, commented: “Even though it is impossible to foresee the future development of this ongoing pandemic, we currently only expect temporary negative impact on our business from the ongoing Corona outbreak.
“Our best guess at the moment is that sports will be resuming successively during the summer. In order to maintain financial stability, we have adapted our cost base through overseeing and hence reducing mainly levels of marketing related costs, but also personnel costs as well as operating costs in general.
“The current situation is by no doubt very challenging, but I’m extremely impressed in how our full organization put their maximum effort and creativity to handle this in an optimal way. I’m very positive on the outlook of Scout Gaming as we continue to agree significant deals with market leading operators.
“As the market leading fantasy sports supplier, we will continue to benefit from a wide geographical landgrab and a growing product portfolio. I also see that the market for Fantasy Sports and player related content is in a favorable global position where operators seek more relevant sports content.”