Scout Gaming Group has been working diligently to reduce costs and turn its business into a profitable enterprise. The company saw a slight decrease in revenue in the third quarter of the year, but significant cost reductions helped to significantly lower its net loss. This has put Scout closer to achieving its long-term goal of profitability.
The decrease in costs was the result of a transformation program that Scout completed in August, which included staff reductions. This initiative aims to make Scout a more efficient and leaner business, particularly in its delivery of services to B2B partners.
Current CEO Niklas Jönsson expressed his confidence in the cost-cutting measures and their future impact on Scout’s profitability. While the effects of the initiative will not be fully realized until the first quarter of 2024, Jönsson remains optimistic and committed to monitoring the company’s progress.
Despite the decrease in revenue during the third quarter, Scout saw growth in its B2B operations revenue, which helped offset a decline in its B2C revenue. Management believes that the B2C operation has the potential to generate profitable growth under controlled measures and aims to realize these in the remainder of the year.
The reduction in operating expenses during the third quarter allowed Scout to significantly narrow its net loss compared to the previous year. The company’s year-to-date figures also show an improvement in revenue and a reduction in net loss, indicating a positive trajectory for the business.
Scout’s cost-saving journey began more than 18 months ago under former CEO, Andreas Ternström, who initiated a cost review and made significant strategic changes to the business. These efforts have continued under the leadership of current CEO Niklas Jönsson, who is committed to making Scout a profitable enterprise.
As Scout continues its efforts to streamline its operations and reduce costs, it remains focused on achieving long-term profitability and delivering value to its shareholders and partners.