Scout Gaming AB continues its corporate reorganisation, as the B2B real-money fantasy sports group reports year-to-date net losses of SEK 30m (€2.5m).
Publishing its H1 interim trading results, Scout reflects on an eventful period during which the company embarked on its reorganisation. This led to a reduction in its workforce to 35 employees and retaining a partnership with a Norwegian company that has since been divested.
Q2 trading showed the Nordic OMX Nasdaq firm registering a 126% increase in revenues, amounting to SEK 9.5m (€800,000), in comparison to SEK 6.5m (€554,500) in Q2 2022.
This improved performance is attributed to Scout Gaming’s refocused approach on its B2B portfolio. During this period, the company optimised 13 integrated partnerships, generating revenues of SEK 8.2m (€690,000).
While B2B growth was promising, B2C revenues declined to SEK 1.3m (€108,000) – down from Q2-2022’s SEK 2.3m (€190,000). Scout, revisiting its B2C partnerships, stated: “Management believes the B2C operation has the potential for profitable growth with controlled measures. The Group aims to realise this potential in the remainder of the year.”
Scout highlighted significant improvements in its business as Q2 EBITDA losses decreased from SEK 23m (€2m) to SEK 6m (€500,000).
With an emphasis on cost control and a reduction in corporate headcount to 44 employees, Scout managed to reduce its H1 operating expenditure to SEK 32m (€2.6m), down from the previous year’s SEK 58m (€4.9m).
Currently, Scout maintains cash and cash equivalents amounting to SEK 56.8m (€4.6m) at the close of the trading period.
Scout CEO, Niklas Jönsson, commented on corporate developments: “To continue on our path to profitability and to enhance shareholder value, much remains to be done. Greater efficiency, sharp focus, and engagement from everyone in the organisation are imperative.
“Over the past 18 months, the Group has undergone significant changes. My team and I believe that our efforts are about to bear fruit, leading us to a more stable and positive future. I want to extend my gratitude to all partners, shareholders, and employees of the Group for their unwavering support and belief in our vision.”