Malta-licensed Scout Gaming Group records 69% drop in Q2 revenue as it faces ‘existential decisions’

Revenue for the second quarter of 2022 by Scout Gaming Group fell by 69 per cent, further widening a year-on-year decrease when compared to the first quarter.

Scout Gaming generated SEK 4.3m (€405,305) for the period under review, less than half of what it managed when compared to the same period last year or the previous quarter, when it recorded SEK 13.9m and SEK 12m respectively.

The revenue performance went on to impact Scout Gaming’s profitability, recording a loss of SEK 17m (€1.6m) in Q2 2021 which has since ballooned to SEK 27m (€2.5m).

Not totally unexpected, the results emerge while the group undergoes a major restructuring exercise. Indeed, just months ago in June the company had cautioned it would be undergoing “extensive change,” including and not limited to a “significant reduction in the number of employees and consultants”.

The company is aiming to let go of more than half of its full-time staff complement as part of a wider effort to severely slash costs. The effects of such a broad restructuring programme will not likely be felt till Q4 of this year, however, according to Scout’s CEO, Niklas Jönsson, who was announced as Andreas Ternström’s temporary replacement in early June.

“The restructuring programme which was launched during the second quarter to handle the challenges above has already given effect and full realisation of the effects will be seen in the fourth quarter,” he said.

When reviewing the first half of 2022, Scout Gaming was found to have clocked in revenues of SEK 16.3m (€1.5m), down year-on-year from SEK 27.3m (€2.6m). Losses, meanwhile, for H1 2022 increased to SEK 47m (€4.4m).