Scout Gaming third-quarter revenue drops 19%

Finance News

Scout Gaming revenues for the third quarter 2021 were mSEK 12.2, a decrease with 19% compared to corresponding year. EBITDA improved to mSEK -6.3. Net result was mSEK -11.9.

Scout Gaming conducted a directed share issue of approxmately 2 million shares on a subscription price of 27 SEK, amounting to mSEK 54.

”During the quarter, we have worked intensively to launch our tier 1 clients. An example is Norsk Tipping, which now has launched Fantasy Sports games for real money. After the end of the quarter, we launched Fantasy e-sports with Razer and we will launch with ATG before year end.

These tier 1 clients will generate growth during the 2022 and beyond. Launching tier 1 customers is the most important cornerstone of our strategy. The operator index was unchanged compared with the previous year, which is primarily due to a very strong development during the third quarter of 2020 when the Group benefited from the condensed calendar of sporting events after Covid-related disruptions – there have not been as many fantasy-related, playable events in the third quarter. Compared with the third quarter of 2019, the index increased by 168 percent.

Revenues were negatively affected in relation to last year for the reasons mentioned above. As a result, however, we had lower marketing costs during the quarter, which in turn resulted in an improved EBITDA compared to previous year. This in turn shows the flexibility of our underlying business and that the work of optimizing our marketing costs is functioning. Extract from CEO Andreas Ternstrom’s commentary to the Interim Report.