Scout Gaming Q3 revenues rise 125% as losses narrow

Swedish daily fantasy sports (DFS) provider Scout Gaming today reported a Q3 revenue rise of 125% to SEK 8.1m (£642k).

EBITDA losses narrowed from SEK -8.7m in the prior-corresponding period to SEK -7.9m for the third quarter, due to an increase in prize pools and the launch of an internal sportsbook.

The provider’s trading index, which measures underlying client activity, increased by 94% despite the comparative period including the World Cup.

Scout Gaming CEO Andreas Ternstrom said: “I am delighted to look back at a successful quarter, in which we fulfilled the objective to increase revenues significantly during the second half of 2019.

“During the third quarter, after an initial learning period regarding Scout’s offering, major clients have started to market our products.

“We have contracted and launched new clients, increased our prize pools and launched new betting related games such as our internal sportsbook, covering fantasy markets.

“This has resulted in all-time high revenues and improved profitability measures across the board,” he added.

Scout Gaming said a focus on signing new clients resulted in a cost level that widened losses – although that trend ended in the third quarter.

The provider expects improved earnings going forward, but warned that volatility between quarters may still occur depending on large customer launches.

Scout Gaming received a $1m investment from former NYX chief Matt Davey’s VC firm in June.