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Scout Gaming publishes Q2 2019: Increased revenues for the start of H2

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Scout Gaming kicks off second half year with multiple deals and sportsbook launch
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”We continue to build long-term values ​​through agreements we entered into during the quarter, integrations we have made, as well as the products we have completed and started to launch with our partners. The effect of spring’s work has as anticipated, started to have an effect after the summer in connection to the start of the major sport leagues. We have previously been somewhat behind schedule, but have caught up after the end of the quarter and are now in line with expectations of achieving a solid revenue growth during the second half of 2019.

The network effect is now starting to get visible and we are moving towards the strongest sales month in Scout Gaming’s history. On our internal brand, we have seen a preliminary revenue increase of approximately 355% compared to August last year. The increase is representative of our customer base in general. The number of paying active users at our customer base has increased by about 300% compared to August 2018.

For the second year in a row, we won EGR B2B Awards for best fantasy product, which is clear proof that we are the market leader. Another example of this is our season-long Premier League game which this season has a record sum prize pool of SEK 2.5 million. The tournament has attracted nearly 10,000 registered teams and is recognized as the biggest European Fantasy Premier League tournament to date. Compared to last year’s season games for the Premier League, player turnover increased almost 250%.”

Extract from CEO Andreas Ternstrom’s commentary to the interim report.

Quarter April – June 2019

• Revenue amounted to mSEK 4.0 (4.9), of which mSEK 2.3 (2.7) was net sales

• EBITDA amounted to mSEK -12.1 (-4.7)

• Net result amounted to mSEK -13.3 (-7.1)

• Earnings per share amounted to SEK -1.0 (-0.6)

• Operator trading index (which illustrates the underlying client activity) increased to 687 (409), a growth of 68%

• Scout Gaming entered into an agreement with the France state lottery FDJ, which is one of the largest gaming companies.

• Scout Gaming has entered into an agreement with Scientific Games Digital, one of the top leading global gaming suppliers. The SG Digital workforce amounts to over 1,500 members of staff across 34 offices around the world, and has an excess of 200 customers, more than 2,000 games and 40 licenses worldwide. Scientific Games has a turnover of 3 Bn USD and is listed on the Nasdaq stock exchange.

• Scout Gaming has entered into an agreement with Expressen regarding deliverance of the company’s gaming platform. Expressen will gain access to a number of sports and is expected to launch during 2019. Expressen, which is part of Bonnier News, is one of the largest media houses on the Swedish market.

• Scout Gaming entered into an agreement with platform provider Digitain. The agreement stipulates the distribution of Scout Gaming’s products. Digitain is a privately held company providing Omni-channel iGaming software solutions to the online, mobile and land-based verticals. Digitain has over 1,000 employees, 55+ partners worldwide, and more than 400 land-based bet shops worldwide.

• Scout Gaming Group has been granted a license by Malta Gaming Authority, which enables Scout Gaming to provide betting related services, to operators under the Maltese regulation.

• Scout Gaming conducted directed rights issues amounting to approximately 27 MSEK. Participants included Tekkorp Capital LLC, Swedbank Robur Fonder AB, Provobis Invest AB and Knutsson Holding AB among a couple of international institutional investors.

Interim period January – June 2019
• Revenue amounted to mSEK 7.6 (4.9), of which mSEK 4.2 (3.6) was net sales.

• EBITDA amounted to mSEK -26.7 (-12.5)

• Net result amounted to mSEK -29.4 (-16.2)

• Earnings per share amounted to SEK -2.2 (-1.2)

Events after the period
Preliminary revenue growth for our internal brand, which is representative for our customer base in general, is approximately 355% in August, compared with the whole of August 2018. The number of paying active users in our customer base has increased by approximately 300% compared with the whole of August 2018. This information is based on the first 29 days of August and should not be seen as a forecast, but an indication of how the quarter has started.

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SKS365 keeps investing in people: GROW People Management Program took the next level

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11 experienced people managers from the SKS365 group’s 4 locations gathered last week in Belgrade for the new GROW People Management Program. From 15 th to 19 th of April, through trainings, discussions, and social connections, people had the opportunity to further grow individually and as a team, while enjoying Belgrade’s city center and rivers.

Created in 2023 with the purpose of building foundation people management skills across the organization, GROW initiative evolved this year by including a new, advanced program for experienced people managers to further consolidate their skills and prepare for future opportunities.

Building and fostering connections, sharing experiences, and enjoying team building experiences – all these activities have been part of the GROWpmp agenda for the 11 people managers coming from Commercial, Product and Development, Finance, and Sportsbook departments of the group’s 4 locations – Malta, Italy, Austria, Serbia.

GROWpmp included a variety of topics that people managers in SKS365 recognized as the key areas for management development. Topics such as influence through communication, team effectiveness, DEI, through to presentation skills and business topics like understanding finance and management reporting, were delivered with the support of external professionals and internal experts, while designed and organized by the SKS365 People & Culture team.

 

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Kindred’s Share of Revenue from High-risk Players Shows Slight Increase

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Kindred Group plc’s (Kindred) share of revenue from high-risk players showed a slight increase to 3.2% (Q4 2023 3.1%) in the first quarter of 2024. Compared to the first quarter of 2023, the high-risk revenue share decreased marginally. The percentage of detected customers who exhibited improved behaviour after interventions came in at 87.1% (compared to 87.4% in Q4 2023 and 83.0% in Q1 2023). This sustained trajectory in the improvement effect after interventions, observed over an extended period, serves as a testament to the strong dedication and collective efforts throughout the company. It reflects Kindred’s ongoing commitment to fostering positive change within the industry.

“We continue to see our share of revenue from high-risk players fluctuate quarter to quarter, and we are working closely with all teams across the company to support customers towards a more sustainable gambling experience. However, it is encouraging to see that our Journey towards Zero data has steadily decreased since 2020. A similar trend can be seen across the healthier gambling behaviour effect after interventions. This tells us two things: our work is paying off, but we need to continue to push ourselves to propel a sustainable progression,” Alexander Westrell, Director of Communications at Kindred Group, said.

“It was very encouraging to witness the open and transparent discussions at the Sustainable Gambling Conference in London on 20 March, where those with lived experience shared their important stories. Also, it is evident that technology is moving forward, and will provide greater opportunities to detect and intervene in the future. We hope to see more regulators engage with the industry and with experts to secure a more sustainable industry for everyone,” Alexander Westrell added.

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PENN Entertainment Names Aaron LaBerge as Chief Technology Officer

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PENN Entertainment announced that Aaron LaBerge has been named Chief Technology Officer (CTO) effective July 1, 2024, subject to customary regulatory approvals. Mr. LaBerge will report directly to PENN CEO & President Jay Snowden.

In his new role, Mr. LaBerge will be responsible for driving the technology strategy and execution for PENN, while leading the multinational team of technologists and serving as the key business leader for the company’s Interactive division.

Mr. LaBerge spent more than 20 years at The Walt Disney Company, in two stints separated by five and a half years as a technology entrepreneur. He was most recently President & Chief Technology Officer for Disney Entertainment and ESPN where he was responsible for driving all technology and product development in support of The Walt Disney Company’s two media divisions. In that role, he helped set the vision and strategic leadership for how Disney uses technology to enable storytelling and innovation, drive its business, and create unparalleled consumer experiences with entertainment and sports content.

“We are thrilled to have someone of Aaron’s caliber join our PENN executive team. Having overseen a global organization of thousands of engineers, product developers, designers, technologists, and data scientists that created some of the largest scale and most successful media properties in the world, there is no better candidate to lead our Technology and Interactive division into its future. I know Aaron is looking forward to working with Todd George, our head of operations, and our entire Executive Team to continue growing our position as a leader in online gaming, sports betting, and digital sports media,” Mr. Snowden said.

“I’m excited to join another talented team at PENN Interactive and lead our technology strategy. PENN Entertainment is at the forefront of the fast-changing gaming and sports media industry. I plan to use my experience from Disney and ESPN to help make ESPN BET an essential piece of the sports fan experience. Together, we’ll push the limits and redefine how fans interact with sports and gaming,” Mr. LaBerge said.

Prior to his most recent role at the Walt Disney Company, Mr. LaBerge was Executive Vice President and Chief Technology Officer at ESPN from 2015 to 2018. At ESPN he played an instrumental role in the growth of ESPN’s consumer-facing digital media products and services – leading many of ESPN’s most ambitious and challenging projects and helping establish ESPN’s position as the leader in digital sports and innovative sports technology development. He was a key architect in the design, development, and engineering of ESPN’s state-of-the-art facilities in Bristol, CT; Los Angeles, CA; Charlotte, NC; and Austin, TX, as well as data centers and infrastructure that connect those facilities around the world, as well as the technology design and development to support the launch of the multi-platform SEC Network.

Between 2007 and 2012, LaBerge was co-founder and CEO of Fanzter, Inc. – a venture-funded consumer software and digital product development company. At Fanzter, he directed all day-to-day operations and led the development and launch of a variety of consumer-focused internet and mobile products, ground-breaking social and commerce technologies and more.

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