Scout Shares Some Good News As Q1 Revenue Almost Doubled

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Article by : Helen Sep 2, 2020

Fantasy sports and betting provider Scout Gaming Group confirmed that it was able to increase its first-quarter revenue by 96%. The operator also reported a decrease in net loss for the first half of 2020. According to official figures, the total revenue for the first half of the year was 1.4 million euros as of June 30. The same figure for 2019 was 97.7% less. These results are indeed good news for the company. The bulk of the market is going through hard times due to Covid-19. Therefore, such an income became a significant achievement for the brand in the first half of 2020.

As a result of the global coronavirus pandemic, all major sporting events worldwide have been completely suspended or postponed until better times. Nevertheless, the gradual return of sports to the big screens could dramatically change the situation. Scout Gaming Group took care of launching the eSports betting service in time. The platform was able to fill the vacuum that formed as a result of sporting events cancellation.

The eSports betting service’s launch helped partially offset the company’s losses due to Covid-19.

Andreas Ternstrom, Scout’s Chief Executive

The eSports betting platform’s start took place in mid-April, and the German Bundesliga resumed in mid-May. Since then, the company has seen a rapid recovery in earnings. This is what led to the outstanding net sales results as of June 30. The operating expenses rose to over 3.8 million euros. Staff costs were reduced by 17% to 1.6 million euros. The operating loss reached 2.3 million euros. The same figure last year amounted to more than 3 million euros. In the second quarter of 2020, when the impact of Covid-19 was most noticeable, the company still managed to generate high profits. As soon as the sporting events resumed, the gaming operator’s revenue increased by 57.5% compared to 2019 and amounted to more than 600,000 euros.

According to the company’s management, the growth in revenue for the three months up to June 30 was associated with the successful implementation of the project for placing bets on eSports and the increased interest in the gradually returning sports. Scout Gaming Group appears to be one of the few online gambling companies to recover from the effects of Covid-19 so quickly. Its CEO also noted that the English Premier League’s launch of a new fantasy game played an equally important role. For the players, this turned out to be the chance to participate in the prize draw of 1 million euros, provided for 2020 and 2021 seasons.

The company also managed to create shares for a total amount of more than 7 million euros. This allowed the Scout Gaming Group to attract large owners and institutional investors from all over the world. The activity of sporting events looks good enough. This means that the company will continue to grow and recover from the losses associated with Covid-19.

Earlier it became known that Scout Gaming Group has launched an exclusive service for placing eSports betting. Now all the company’s clients can access all the most developed and emerging eSports markets. Scout Gaming will support the most trending games such as FIFA, NBA 2k, Virtual Formula 1, CS: GO, LOL, and Dota2. Before the official service launch, the company offered its customers the opportunity to place bets on partner sites. However, now it can use its own powerful resources. The gaming service also plans to add new eSports destinations to expand its gaming portfolio and meet consumer demand.

Helen

Chief Editor

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