Scout Gaming Group sees revenue double in Q2
Scout Gaming Group’s revenue was up by more than 100 per cent year-on-year but continues to be outstripped by expenses.
Sweden.- The fantasy sports company Scout Gaming Group has reported revenue of SEK13.9m (€1.4m) for the second quarter of 2021. That’s an increase of more than 100 per cent year-on-year, but expenses also rose, resulting in only a small reduction in the company’s quarterly loss.
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The number of active players per month quadrupled in comparison to Q2 2020 and the company’s operator trading index, which tracks the revenue operators make from its products, more than tripled.
However, operating expenses grew by 68.4 per cent year-on-year and, at SEK29.8m, more than doubled revenue. Personnel expenses rose 53.5 per cent to SEK10.5m, other external expenses increased by 77.7 per cent to SEK16.7m. And depreciation, amortisation and impairment expenses rose 85.1 per cent to SEK2.6m.
The company reported an operating loss of SEK15.9m and a final loss of SEK17m, just 2.8 per cent less than Q2 2020.
Scout Gaming Group six month results
Revenue for the first half of 2021 came in at SEK27.3m, an increase of 82.6 per cent year-on-year. Costs were also up year-on-year resulting in a final loss of SEK27.3m, around half the loss recorded for H1 2020.
Chief executive Andreas Ternstrom said: “The European fantasy sports market for real money is still in a very early phase and we are predominantly building the market ourselves through our B2B partners and our B2C brand Fanteam.
“Our internal assessment of the potential size of the European fantasy sports market remains at between SEK5.5bn and SEK7.0bn on gross gaming revenue level, which means approximately 2-3 per cent of the entire total online gaming market in Europe.
He added: “We have after the quarter ended been able to demonstrate our live sportsbook offering on Fanteam, following a two-year trial with pre-match bets.
“With a limited cost base, built on a scalable modular tech framework, we are able to run the sportsbook operations alongside with the core DFS offering, without adding too much additional resources.
“From the start, this was built to optimise the seamless offering between traditional sportsbook and fantasy sports, something we now have been able to start demonstrating. We received requests from external operators wanting to evaluate our full sports offering and are expecting the first full B2B sports client to be beta launched later this year.”
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