Since providing success to its investors, Scout Gaming Group remains optimistic of its long-term market model and potential commercial prospects.
The Nasdaq Nordic listed B2B fantasy sports provider posted full-year corporate sales of SEK 47 million (EUR 4.6 million), up 85 percent from the comparable SEK 26 million for FY 2019, facing various COVID difficulties interrupting its regular trade.
As Scout’s B2B DFS network benefited from a fully re-scheduled football calendar with Q4 sales rising by 69 percent to SEK 17m (EUR 1.7m), revenue growth was helped by a solid close to end of year trade.
Restore network partner operation
Despite major headwinds in the first half of the year, Scout said it was able to restore network partner operation in the fourth quarter of 2020, with a 135 percent rise in regular active customers of +2,500. It also cited a high number of people signed up for its €1 million network fantasy football league.
Scout raised its cumulative full-year operating expenditures to SEK 93 million (€9 million) after accounting for COVID-19 revisions, up 18 percent from SEK 79 million in FY2019.
Scout’s expanded investment was due to the DFS provider expanding its commercial portfolio, securing a new tier-1 relationship with Greek online gambling company Kaizen Gaming, and becoming the main DFS supplier for Betano and Stoiximan products.
Scout’s underlying corporate loss for 2020 was lowered to SEK 46 million, down from SEK 53 million in the previous year’s accounts.
Nevertheless, Scout absorbed an impairment fee of SEK 9 million at the close of its 2020 accounts, declaring SEK 54 million full-year corporate losses marginally above its 2019 results.
Scout aims to track COVID-19 trends across European jurisdictions with a view to 2021, but is assured of sustaining the return of its network to normalised trade.
Faster pace of digitalisation
Scout Gaming CEO Andreas Ternström said: “In a longer perspective, COVID-19 has resulted in a faster pace of digitalisation in general and for companies operating in the entertainment sector in particular, which has benefited Scout Gaming.
“We have updated our internal assessment of the potential size of the European fantasy sports market and currently estimate it to amount to between SEK 5.5-7bn at gross gaming revenue level, which means approximately 2-3% of the entire total online gaming market in Europe.”