Scout Gaming Group had a revenue drop in the second quarter

Scout Gaming Group had a revenue drop in the second quarter

Scout Gaming’s revenue fell for the second quarter in a row, widening the year-on-year decrease.

The company’s revenue in the second quarter was less than half of what Scout produced in the prior-year period and previous quarter.

The company’s profitability was further impacted by this. Scout recorded a loss of almost 17m in the second quarter of 2021, but this has since widened to 27m.

The results come as a result of a restructuring programme. The company said in June that it would undertake an “extensive change” that would include a reduction in the number of employees and consultants.

More specifically, Scout is looking to lay off more than half of its full-time workforce as part of a broader effort to make cost savings.

The full effects of Scout’s reorganisation will not be realised until Q4 according to the company’s acting CEO, Niklas Jnsson.

The restructuring programme which was launched during the second quarter to deal with the challenges above has already given effect and full realization of the effects will be seen in the fourth quarter, he said.

Scout produced a total revenue of 16.3m on a half-year basis, down from 27.3m on a year-on-year basis. The company lost more money in H1 than in the previous year, going from 26 million to 47 million.

Jnsson was still optimistic though he acknowledged there was much work to be done to return Scout to growth. He concluded: “I look forward to the future of Scout with several promising projects and integrations aimed at increased growth.”

It will involve a lot of work, continued streamlining and razor-sharp focus from all of us in the organisation, to realise our plan.

Summary:

Scout Gaming’s revenue fell by 69% to 4.3 million in the second quarter of 2021, as compared to 13.9 million in the year-ago period. Scout recorded a loss of almost 17 million in the second quarter of 2021. Scout is looking to lay off more than half of its full-time workforce as part of a broader effort to make cost savings.