Scout Gaming Group will aim to deliver a strong close to its 2020 trading, after the B2B daily fantasy sports software supplier reported that it had benefited from the return of a full sports calendar.
Publishing its Q3 trading update for the period ending 30 September, Scout reported ‘record’ corporate revenues of SEK 15 million (€1.5m), an 85% increase on corresponding 2019 results which totalled €8 million.
The company stated that September was a key trading period, which delivered record client activity across its B2B fantasy sports network. Player activity was up by 117%, which the supplier said was driven by a strong take-up and promotion of its ‘enhanced prize pool’ Premier League and Champions League weekly games.
During Q3, Scout also detailed that it had strengthened its commercial pipeline, having expanded its current lead DFS supplier agreement with Kaizen Gaming to service its Greek flagship subsidiary Stoiximan and Pan-European sportsbook Betano.
Furthermore, Scout has expanded its real-money DFS platform for the CIS region after securing a licensing agreement with Parimatch. Scout’s expanded commercial activities and product enhancements saw the company absorb period costs of SEK 28 million (€2.7m), as the company targeted aggressive expansion within underpenetrated European DFS markets.
As a result, the company recorded a negative Q3 EBITDA result of SEK 11.6 million (-€1.1m), as corporate net losses widened by 36% to SEK 13.4 million (€1.2m).
Scout also completed an oversubscribed funding round, raising a further SEK 75 million from private investors with funds being used to ‘accelerate growth and further enhance product development’.
Closing Scout’s trading statement, CEO Andreas Ternström commented: “Scout Gaming continues to focus on product development, and we are close to launching another game in our network. Our jackpot betting product is currently being beta tested on Fanteam and is expected to be gradually rolled out by next year.
“We continue to see strong prospects for the European market for sports in general and for fantasy sports in particular, we make the assessment that we have opportunities to grow the business significantly in the future.”