Scout Gaming has published its financial report for 2022, highlighting a noticeable decrease in annual losses. The B2B fantasy sports and betting provider attributed the improved metrics to its cost-effective strategy.
As reported, Scout Gaming recorded losses of $5.76 million (converted from Swedish Krona) representing a 27% year-on-year decrease from the $7.87 million in losses recorded in 2021.
Despite still dealing with losses demonstrates, Scout Gaming managed to get things under control thanks to its strategy. Hellbent on cutting losses, the company also cut its workforce in half and drastically reduced its operating expenses.
Scout Gaming is bullish on growing its presence and becoming a business with robust revenues. According to CEO Niklas Jönsson, his team will continue to work hard to turn Scout Gaming into a profitable company. He added that a lot of work still remains and there is a lot more that can be done.
Jönsson noted that he will continue the battle and is determined to succeed. He said that he will help Scout Gaming evolve even if more transformative work is needed.
2022 Presented Scout Gaming with Quite a Few Challenges
Taking a look at how Scout Gaming performed in 2022, we see that the company’s total revenues sit at $2.46 million, representing an unfortunate decrease of 20%.
Revenues from the company’s business-to-customer operations, meanwhile, declined by 47% to $1.12 million. The business-to-business segment, on the contrary, experienced an increase of 46% to $1.34 million.
Scout Gaming also recorded EBITDA losses of $6.51 million. Earnings per share amounted to only $0.026 and the board proposed that no dividend will be paid for the year.
While the company is still struggling to record positive revenues, it managed to skillfully take care of its B2B sector. The company cut all of its non-effective partnerships and now has 13 remaining clients. It should be noted that only eight of Scout Gaming’s current partnerships are active, with the remaining five still under integration.
Scout Gaming’s 2022 was suboptimal and undermined by various headwinds. The company described some of the quarters as “intensive periods” that prevented it from achieving the desired results.
Despite the setbacks, 2022 was favorable in terms of partnerships, as Scout Gaming formed agreements with quite a few companies. In October, Scout entered Australia with Apple iSports. Then, two months later, it agreed to provide Cartola with its suite of daily fantasy products.