Scout Gaming Group - Daily fantasy sports

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Swedish operator ATG joins the Scout Gaming Network

MON FEB 14, 2022 08:00 CETReport this content

The operator will kick off with a Champions League Playoff tournament featuring a guaranteed SEK 2.5 million prize pool.

ATG, the Swedish Horse Racing Totaliser Board, is the latest operator to join the Scout Gaming Network, offering its customers from today the opportunity to participate in a wide range of Fantasy Sports tournaments with prize pools.

This will include a SEK 2.5 million guaranteed Champions League Playoff tournament where the overall winner will receive a minimum prize of SEK 500,000. The launch will also include a host of English Premier League contests with combined prizes of over SEK 1 million in the first week alone.

Under the agreement, ATG will also join Scout Gaming’s growing tournament network and gradually add daily and season-long fantasy contests across more sports and leagues to provide its customers with a comprehensive fantasy sports offering.

Scout Gaming has emerged as a leading B2B provider of daily fantasy, sports betting, and fantasy betting products, with its growing network of operator partners able to offer players tournaments and contests with the world’s largest prize pools.

Andreas Ternström, CEO of Scout Gaming Group, said: “We are delighted to add ATG to the Scout Gaming Network and for its players to be able to compete in the most exciting and intense fantasy sports contests with prize pools.”

“By rolling out fantasy sports to its players, ATG will be able to generate tremendous added value while distinguishing itself from its competitors. Fantasy has a proven track record of taking player entertainment and enjoyment to the next level, increasing engagement and ultimately higher lifetime values.”

Christian Erlandsson, Head of Sports Betting at ATG, said: “We have grown rapidly since launching sports betting just three years ago. Fantasy sports will enhance our overall offering, and we are excited to add it.”

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SCOUT GAMING Publishes Year-End Report 2021:

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It has been announced to Scout Gaming that the CEO, CFO, and one board member have increased their shareholding during Friday, March 11.

Andreas Ternström bought 14,000 shares and owns a total of 473,340 shares, Niklas Jönsson bought 31,000 shares and a total of 43,500 shares, and the board member bought 34,850 shares.

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Stockholm, 31[st] March 2022 - Scout Gaming Group has signed with a subsidiary of the world leading sports betting operator bet365. The agreement is the largest deal which the Group has signed.
The agreement with bet365 will give a positive effect on the revenue during the second half of 2022.

Andreas Ternström, Chief Executive Officer of Scout Gaming Group, said: “bet365 is the world leading sports betting operator and we are extremely proud and excited to be the supplier of our full portfolio of Fantasy Sports and Betting to them. This deal strengthens the view on our product portfolio with the sports betting operators.”

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This is pretty big news.

How long will it take from the deal to go live? According to the last couple of quarterly reports, a solution to this problem is precisely what they’re looking for.

My guess is a launch for next season’s Premier League.

The stock price has already been driven to rock bottom and below; they have an office and most employees in Western Ukraine, with 4-5M€ in cash…

It can’t drop any lower than 7KR, so is it time to buy?

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This is really big news, and I’m even surprised that the daily positives ultimately dropped below ten percent. Truly big news in a business sense, but in my opinion, even bigger for credibility.

H2 was mentioned in the news; one would think the intention would be to have everything running by August at the latest.

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Bet365 luvut: wiki: Bet365’s reported figures (March 2020-21) showed revenues of £2.8 billion and a profit of £470 million before tax.
Crunchbase: Bet365 is ranked 288 among websites globally based on its 113,813,930 monthly web visitors.

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First Quarter: Jan-Mar 2022

Gaming revenue was SEK 6.7 (8.4) million, corresponding to a 20% decrease due to the effects of the war between Russia and Ukraine.

B2B revenue was SEK 2.4 (1.9) million, an increase of 23%

B2C revenue was SEK 4.3 (6.5) million, a decrease of 34%.

Total revenue was SEK 12.0 million (13.4)
EBITDA decreased to SEK -18.2 million (-15.0)
Net profit decreased to SEK -19.6 (-9.3) million
Earnings per share were SEK -0.9 (-0.5)

Scout Gaming signed an agreement with bet365, the world’s leading sports betting operator.

Events after the end of the period

A cost-saving program has been launched, which will come into effect in the second quarter, but fully in the second half of the year.

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Looks like loan arrangements and a share issue are being added on top of that commotion.

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Pretty crisp cods (losses) from autumn 2020 to now, about -97%. Daily losses recently even in the -22% range. Any views on the future of this outfit?

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It seems that financing is now secured through loans from major shareholders, which, as I understand, will be repaid with a massive share issue. The strategy has shifted from pursuing growth regardless of costs to minimizing costs throughout the organization. Profitability should apparently be much better for the past few months, based on messages in Fanteam’s Discord, but who knows for sure.

Bet365 should go live in the coming months, and if a company of that size doesn’t have a positive impact on Scout’s numbers, then the story might slowly be over. The end of the war would, of course, also be a big plus, as most of the employees are in Ukraine and a significant portion of revenue reportedly came from the Russia-Ukraine axis.

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Yeah, 100 million kronor is coming from the share issue, which will bring 200 million new shares at a price of 0.50 SEK, and 40 million kronor of that will immediately go to repaying the bridge loans of these major owners.

I’ve been wondering why the stock price hasn’t reacted more to the share issue news, given that there were only 22.5 million shares before. Because the price only dropped temporarily to around 1 SEK and then almost recovered to previous levels, the company is now suddenly 10 times larger in market value when you take the new shares into account. Maybe the trading volume is so low that individual buyers can still sustain the share value.

The Q2 result is expected to be quite bad according to the announcements, as another 17 million kronor expense from earlier times was reportedly found. I’d be surprised if the stock doesn’t tank again at that point.

By the way, has anyone found information on when the extraordinary general meeting, which approves the new share issue, will be held and when the new shares will be listed?

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Hi, I’m new to this and I’m wondering if I’m missing something here. Why hasn’t the stock price fallen more? Currently, there are 22 million shares. In the upcoming share issue, the company aims to sell 200 million shares at a price of SEK 0.50. Shouldn’t the price be at least closer to SEK 0.50?

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Bet365 announced yesterday that it’s live (surprisingly quickly) and up +30% today.

I’ve also been wondering about the stock’s movements and would like to understand more about the rights issue. Was this rights issue possibly already priced in because the need for cash was so obvious, and now that the risk of bankruptcy has been removed for at least a couple of years, the stock is being bought back? Can the rights issue price still change, e.g., 100M shares at 1 SEK or even 50M shares at 2 SEK?

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Shares subscribed for under the subscription commitments and subscription undertakings may not be transferred without the Company’s prior consent during a period of nine (9) months from the date of transfer of the shares in the share issue (so-called lock-up).

https://www.scoutgaminggroup.com/investor-relations/press-releases/f9b0dd51647ee48e

It seems you can’t sell them immediately.

It is also likely that the shares have already been priced, as the issue has been known since spring/early summer.

Edit. Worst spelling errors.

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In my opinion, the 9-month lock-up only applies to the four largest owners who have guaranteed to subscribe to any shares not subscribed by other owners in the offering.

The price is a bit strange and will probably fluctuate, but I see it like this: for example, 1 share at 2 SEK gives the right to subscribe to 9 shares at 0.50 SEK, making the average price for ten shares 0.65 SEK. (Currently, at 3 SEK, it’s 0.75 SEK).

With that 0.65 SEK pricing, the company’s market cap would be about 3 times more valuable (after adding new shares to the stock exchange) than it was at the 2 SEK price with the current number of shares. So, when the shares from the offering are added for trading, I would expect one share to be clearly below 1 SEK; otherwise, the market cap would again be quite inflated compared to the company’s performance.

Regarding the size of the offering, there is no guarantee that the threat of bankruptcy would be gone for a couple of years, even with that amount (101 million SEK), if the company cannot quickly improve its productivity. Over 40 million of that hundred million has already been immediately used to repay bridge loans, and the company has still been heavily loss-making, so that less than 60 million will not last very long without a clear improvement in results.

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First quarter: January – March 2022

  • Revenues from the gaming operation amounted to mSEK 6.7 (8.4), corresponding to a decrease of 20%, due to effects from the war between Russia and Ukraine.
  • B2B revenues amounted to mSEK 2.4 (1.9), increase of 23%
  • B2C revenues amounted to mSEK 4.3 (6.5), decrease of 34%
  • Total revenues amounted to mSEK 12.0 (13.4)
  • EBITDA decreased to mSEK -18.2 (-15.0)
  • Net result decreased to mSEK -19.6 (-9.3)
  • Earnings per share amounted to SEK -0.9 (-0.5)
  • Scout Gaming entered into an agreement with bet365, the world leading sportsbetting operator.

As an example, the company lost almost 20 million kronor in the first quarter of January-March.

Since then, of course, half of the staff has already been laid off and various other cost-cutting measures have been attempted, but how much has those measures reduced the losses? Not to mention turning the result positive. Time will tell, but the company’s track record recently is not very pretty to look at.

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No, huh huh

Second quarter: April – June 2022

  • Revenues from the gaming operation amounted to mSEK 4.2 (8.0), corresponding to a decrease of 47 percent
  • B2B revenues amounted to mSEK 1.8 (2.6), a decrease of 30 percent
  • B2C revenues amounted to mSEK 2.4 (7.1), a decrease of 66 percent
  • Total revenues amounted to mSEK 4.3 (13.9)
  • EBITDA decreased to mSEK -23.3 (-13.3)
  • Net result decreased to mSEK -27.3 (-16.9)
  • Earnings per share amounted to SEK -1.2 (-0.8)
  • The Board made a proposal to the coming extra general meeting of a fully guaranteed rights issue of mSEK 101
  • Received bridge financing of mSEK 20 from three larger shareholders
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