Scout Gaming Group (SCOUT) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues rose 87% year-over-year to SEK 11.8m, driven by both B2B and B2C growth.

• EBITDA turned positive at SEK 0.1m, up from SEK -5.9m in Q3 2023.

• Net result improved to SEK -0.1m from SEK -5.8m year-over-year.

• Signed a significant extension with bet365 for non-North American territories after the quarter.

• Management expects continued improvement and aims for cash flow positivity within 12 months.

Financial highlights

• Q3 B2B revenues increased 55% to SEK 8.4m; B2C revenues up 70% to SEK 1.7m.

• Other revenues of SEK 1.8m in Q3 were non-recurring, related to contract terminations and development fees.

• Total expenses in Q3 decreased 4% to SEK 11.7m; personnel costs up 6%, external expenses down 11%.

• Cash and cash equivalents at period end were SEK 38.0m, down from SEK 56.8m a year earlier.

• Cash flow from operations in Q3 was SEK -1.1m, improved from SEK -4.4m year-over-year.

Outlook and guidance

• Investments in development staff and a new CTO are expected to increase expenses in Q4.

• Ongoing partnerships and organizational investments are anticipated to drive positive results over the next 12 months.

• Current cash forecasts indicate sufficient liquidity to reach cash flow positivity.