Monday, October 3, 2022

Scout Gaming Group records 69 Q2 revenue drop amid existential decisions

Scout Gaming’s revenue fell by 69% for Q2, a widening year-on-year decrease when compared to the first quarter.

In total, the company generated SEK 4.3m ($407,856) in second quarter revenue, less than half of what Scout produced for both the prior-year period and previous quarter, when it recorded SEK 13.9m and SEK 12m respectively.

This in turn further impacted the company’s profitability. While Scout recorded a loss of almost SEK 17m for Q2 of 2021, this has since widened to SEK 27m.

These results come amid a major restructuring programme. In late June, the company said it would undertake an “extensive change,” including a “significant reduction in the number of employees and consultants.”

More specifically, Scout is looking to lay off more than half of its full-time workforce as part of a broader effort to make cost savings.

However, the company’s acting CEO, Niklas Jönsson, who was announced as Andreas Ternström’s temporary replacement in early June, said the full effects of Scout’s reorganisation will not be realised until Q4.

“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,

On a half-year basis, Scout produced a total revenue of SEK 16.3m, down year-on-year from SEK 27.3m. Meanwhile, the company’s loss for H1 widened, going from SEK 26m to SEK 47m.

Nevertheless, Jönsson remained optimistic, though he acknowledged there is much work required to return Scout to growth. He concluded: “I look forward to the future of Scout with several promising projects and integrations aimed at increased growth.

“However, it will involve a lot of work, continued streamlining and razor-sharp focus from all of us in the organisation to realise our plan.”

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