After the B2B daily fantasy sports software supplier announced that it had benefited from the return of a full sports calendar, Scout Gaming Group will seek to offer a good close to its 2020 trade.
Scout posted ‘record’ corporate revenues of SEK 15 million (EUR 1.5 million) when it released its Q3 trading update for the period ending 30 September, an 85% improvement on the corresponding 2019 results, which amounted to EUR 8 million.
September was a key trading season, which delivered record customer activity across its B2B fantasy sports network, the company said. Player participation increased by 117 percent, which the supplier said was motivated by a heavy take-up and promotion of its Premier League and Champions League weekly games ‘enhanced prize pool.’
Scout also clarified in depth during Q3 that it had expanded its commercial pipeline by expanding its existing lead DFS supplier agreement with Kaizen Gaming to serve its Greek flagship subsidiary Stoiximan and Betano Pan-European sportsbook.
In addition, after securing a licencing agreement with Parimatch, Scout has extended its real-money DFS platform to the CIS region. As the company pursued rapid expansion across underpenetrated European DFS markets, Scout’s increased commercial activities and product upgrades saw the company absorb period costs of SEK 28 million (EUR 2.7 million).
As a consequence, the company reported a negative EBITDA result for Q3 of SEK 11,6 million (EUR 1,1 million), as corporate net losses increased by 36 percent to SEK 13,4 million (EUR 1,2 million).
An oversubscribed funding round was also completed by Scout, raising an additional SEK 75 million from private investors with funds being used to ‘accelerate growth and further boost product development.’
CEO Andreas Ternström commented at the end of Scout’s trading statement: “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.”
Scout Gaming publishes Q3 2020: Revenues increased 85% to SEKm 15.0
Read the full report here: https://t.co/EaZffzzfFC#scoutgaming #q3report #q3 #PressReleases pic.twitter.com/5cK9WkFLgI
— Scout Gaming Group (@scoutggroup) November 18, 2020