Scout Gaming share price shoots up on 69% revenue increase

Finance News

Daily fantasy sports provider Scout Gaming Group narrowed its operating loss in the fourth quarter of the year as revenue climbed 69% to SEKm 16.9.

Scout Gaming continues to meet strong demand at the same time as we have so far only touched the long-term potential. 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 5.5-7.0 billion at Gross Gaming Revenue level, which means approximately 2-3% 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 percent compared with the corresponding quarter last year.

EBITDA improved from SEK -8.1 million to SEK -5.8 million. Cash flow from operating activities improved from SEK -2.6 million during the fourth quarter of the previous year, to SEK 0.2 million during the fourth quarter of this 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.” said Andreas Ternstrom, CEO.