The programme is the result of a thorough business review, designed to improve efficiency while suppling higher quality products to Scout clients.
As part of the programme, Scout has divested its Scout Gaming AS Norwegian subsidiary to its management. Scout Gaming AS will continue to be engaged as a subcontractor on a limited level.
The initiative has also led to a reduction in the number of full-time employees. Scout did not disclose how many staff had been impacted by the project.
Chief executive Niklas Jönsson said the changes will benefit the group financially, as well as allow it to provide a better service to partners around the world.
“It is my firm belief that these changes will have a positive impact both for partners’ and for the group’s objective to reach more positive results and cash flow,” Jönsson said. “We thank our partners for their trust and look forward to delivering player experience through our products, together.”
All change at Scout
Completion of the programme follows a series of other changes at Scout over the past year.
The process began when Scout’s former CEO Andreas Ternström initiated a cost review in March 2022. This came after he expressed concern over slow growth and rising expenses in Q4 of 2021.
However, Ternström left the business a few months later amid talk of “major reorganisation” at Scout. He was replaced by Jönsson, who had joined as chief financial officer towards the end of 2021.
In the weeks that followed, Scout announced plans to cut half its workforce, including staff in Ukraine. This came as Scout discovered SEK17.0m (1.3m/€1.5m/$1.6m) in previously unknown financial commitments for its 2021 financial year. At the time, Scout said cutting staff would help save approximately SEK32.0m per year.
The strategy also included a share issue that would dilute existing holdings in the business by 90%. In September, it was revealed that the business was able to raise SEK101.0m through the scheme.
At the time, Scout said 40% will be used to repay bridge financing obligations. The remaining 60% of the proceeds was added to the group’s cash balance.
B2B partnerships close
As the year drew to a close, Scout announced that it had finalised the restructure of its B2B operations. Ultimately, this led to it closing 11 partnerships and reducing the total number of co-operations to 13.
Of the remaining agreements, eight were integrated and five planned to be in full operation during the first quarter of 2023.
Moving into 2023 and upon posting its FY22 results, Scout revealed it was able to reduce its net loss year-on-year. Net loss was down from SEK82.6m to SEK60.1m, while EBITDA loss was also reduced from SEK84.3m to SEK67.9m.
In March, Jönsson was appointed CEO on a full-time basis, after steadying the ship during her months in the interim role.
However, despite Scout further reducing operating costs and posting a net profit during Q1, Jönsson warned of additional spending cuts.
“Management is in a process to evaluate further reductions in costs, but these need to consider the organisation’s capabilities to deliver to the existing partners which are live and to those who are becoming live in the coming months,” Jönsson said at the time.
Original article: https://igamingbusiness.com/strategy/management/scout-headcount-transformation-program/
