Scout announced its plans for restructuring during its Q3 report, led by CEO Niklas Jönsson. The goal of the program was to ensure profitability in all partnerships and reduce expenses. Jönsson stated that Scout had a high cost base compared to revenue but believed their product had a right to exist. As a result, Scout renegotiated several partner agreements and terminated unprofitable ones during Q3 and Q4, resulting in the end of 11 partnerships. Currently, Scout has 13 partnerships in place, with eight integrated and five planned for full operation in Q1 2023.
One new partnership includes providing fantasy sports to Brazilian operator Cartola. This agreement is owned by DFS Entretenimento and the product is set to launch in Q1 2023. Scout’s Chief Commercial Officer, Araz Heydariyehzadeh, stated that the focus of the changes was to have only profitable partnerships. The company ended non-profitable partnerships and strengthened their focus on existing and new ones, working cooperatively with partners without additional expenses.
Furthermore, Scout standardized their offering for content deliveries in new agreements, leading to significant efficiencies, cost savings, and improved quality. They also renegotiated commercial terms in existing agreements and implemented a new contract model for future collaborations. Overall, these measures have positioned the company for profitability in their B2B business, a first in their history.
In addition to the restructuring, Scout raised SEK101m through a share issue process to save the business. This came after discovering a SEK17m commitment in the company’s accounts that was previously unknown. A major restructuring of personnel also took place, with 68 out of 131 full-time workers being laid off, leaving 63 remaining staff members.
