In the three months leading up to 31 March, Scout Gaming Group reported a revenue of SEK13.4m, a substantial increase from SEK8.7m in the same period last year. This growth can be attributed to the acquisition of new clients, including partnerships with ATG in Sweden and Norsk Tipping in Norway. Scout Gaming has successfully integrated with these operators pending approval from the Norwegian Ministry of Culture before launching with Norsk Tipping. The company also experienced higher activity within its current client base, partly due to increased prize pools. Scout CEO Andreas Ternstrom believes that the successful launches and partnerships will elevate Scout Gaming to a new level.
Operating expenses during the quarter were 40.4% higher at SEK30.6m, primarily due to increased marketing costs associated with higher prize pools. Other external expenses also rose by 90.7% to SEK18.5m. Despite the higher revenue, Scout Gaming experienced an operating loss of SEK17.3m in Q1, compared to SEK13.1m in the same period last year. However, the company received SEK8.0m in income from financial items, leading to a loss before tax of SEK9.3m, which was an improvement from SEK9.8m in Q1 of 2020. Scout Gaming paid SEK19,000 in income tax, resulting in an overall loss of SEK9.3m for the quarter.
Despite the Q1 loss, Scout Gaming remains confident in delivering long-term high growth and aims to establish itself as a dominant player in the European fantasy sports market.
