Scout CEO orders cost review after “unsatisfactory” Q4
Andreas Ternström, chief executive of fantasy gaming provider Scout Gaming Group, said the business would initiate a cost review after he was “not at all satisfied” with the supplier’s slow growth and rising expenses in Q4.
Revenue ticked slightly upward to SEK17.1m, after revenue of SEK16.9m in Q4 of 2020.
Expenses, meanwhile, more than doubled to SEK51.0m.
Personnel expenses grew to SEK13.7m, but most of the growth was in other external expenses, which were up 148.5% to SEK34.3m. Ternström said the increase in other costs was mostly related to marketing, plus a one-off SEK18m cost after expenses for tournament participation tickets had been “wrongly accounted for” in prior periods.
If the errors had been attributed to these previous quarters instead, expenses would have come to SEK33.1m.
Depreciation and amortisation also grew, by 50.2% to SEK3.1m.
As a result, the business made an operating loss of SEK33.9m, which was more than five times its operating loss in 2020.
After a ..