Interactive
Sweden – Scout Gaming reports 69 per cent revenue rise
By Lewis - 1 March 2021
Scout Gaming has reported strong growth with revenues increasing by 69 per cent to SEK 16.9m during the fourth quarter. Total revenue for the year amounted to SEK 46.9m.
EBITDA improved from SEK -8.1m to SEK -5.8m. Cash flow from operating activities improved from SEK -2.6m over Q4 of the previous year, to SEK 0.2m in 2020.
“During the full year, total revenue base thus grew by 84 per cent, despite a strong negative impact from COVID-19 at the end of the first and sizeable 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 digitalisation 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,” explained Andreas Ternstrom, CEO of Scout Gaming.
“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 5.5-7.0bn at GGR level, which means approximately two to three per cent 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 per cent compared with the corresponding quarter last 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.”
Thus far in 2021 Scout Gaming has launched another product for its portfolio, the Pick’em Jackpot game, and 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 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.
