Scout Gaming saw its revenues dip in the second quarter, with the company stressing it is back up to full speed with expectations of growth in the second half of 2019.
In the period April to June 2019, the fantasy sports provider’s revenue was SEK4.0m (???), down from SEK4.9 the year previous, with EBITDA recorded as a loss of SEK12.1m (minus SEK4.7m). Net result was minus SEK13.3m (minus SEK 7.1m).
During Q2, Scout Gaming entered into agreements with gaming supplier Scientific Games, Swedish media house Expressen and platform provider Digitain, while gaining a Malta Gaming Authority licence.
During the first half of 2019, the company’s revenue grew to SEK7.6m (SEK4.9m), of which SEK4.2m (SEK3.6m) was net sales. EBITDA was minus SEK26.7m (minus SEK 12.5m) and net result minus SEK29.4m (minus SEK16.2m).
Scout Gaming CEO Andreas Ternstrom said: ”We continue to build long-term values through agreements we entered into during the quarter, integrations we have made, as well as the products we have completed and started to launch with our partners. The effect of spring's work has as anticipated, started to have an effect after the summer in connection to the start of the major sport leagues. We have previously been somewhat behind schedule, but have caught up after the end of the quarter and are now in line with expectations of achieving a solid revenue growth during the second half of 2019.
“The network effect is now starting to get visible and we are moving towards the strongest sales month in Scout Gaming's history. On our internal brand, we have seen a preliminary revenue increase of approximately 355 per cent compared to August last year. The increase is representative of our customer base in general. The number of paying active users at our customer base has increased by about 300 per cent compared to August 2018.”
