Scout Gaming narrows 2022 losses as cost concerns remain

Scout Gaming AB cites that more ‘transformative work’ is required for the company to become a profitable cash-generating business.

The Nasdaq Nordic listed real money fantasy sports software supplier saw its full-year 2022 net losses stand at SEK 60m (- €5.5m), with bottom-line results reflecting a 27% decrease on FY2021 losses of SEK 82m (-€7.4m).

The narrowing of year losses was primarily attributed to Scout Gaming applying strict cost reduction measures that saw the company halve its staff headcount from 125-to-64 employees – as group operating expenses were reduced from SEK 122m to 94m (€8.3m).

Applying cost reduction measures, Scout Gaming registered a FY2022 deficit in headline revenues to SEK 25m, down 20% on FY2021 comparative results of SEK 32m.

The downturn in corporate revenues reflected the company tightening its B2B contracts, in which it terminated non-effective partnerships, which reduced its B2B portfolio to 13 remaining clients – “eight which are active and the remaining under integration”.

Elsewhere, the firm’s B2C unit saw revenues decrease by 47% to SEK 11.7m (FY2021: SEK22m) – as Scout Gaming reduced investment in the unit’s flagship FanTeam brand, which is currently under review “to generate profitable growth under controlled measures.” 

Taking on board a new business model, Scout Gaming saw its FY2022 EBITDA reduced to SEK 68m, down 19% on 2021 comparative results of SEK 84m.

2022 financial developments saw the company raise SEK 101m via a share issue settlement, a transaction that diluted the group’s shareholding by approximately 90%.

Scout Gaming governance detailed that the transaction was necessary to see the business through its ongoing corporate transformation to apply new cost controls.

Acting CEO Niklas Jönsson commented: “To continue the transition to become a profitable company and to create shareholder value a lot of work remains, more efficiencies to achieve and sharp focus and engagement from all of us in the organisation is required.

“As we execute on our plans a profitable cash generative company is a possibility and a target, even if more transformative work is needed. I am determined to continue this fight.”


Check Also

SBC News BOS: Swedish operators united in support of data exchange against match-fixing

BOS: Swedish operators united in support of data exchange against match-fixing

Swedish operators have pledged to back the terms of a memorandum proposing greater cooperation between …

Svenska Spel trials ‘coupon free’ paperless purchase as next retail innovation 

Svenska Spel says Spelinspektionen decision ‘inconsistent with regulations’

A response has been issued by Svenska Spel relating to the state-owned operator being penalised …

Twitch CEO has ’no problem’ with streaming of licenced gambling

Twitch faces Swedish spotlight on influencer infringements

Twitch, the live streaming platform of Amazon, has come under scrutiny in Sweden following a …