Coinciding with the conclusion of a critical transformation program in August 2023, Scout, a prominent service provider to B2B partners, has announced it is on track for enhanced profitability. This comprehensive program, unveiled in March 2022 under the stewardship of then-CEO Andreas Ternström, has borne fruit, particularly in a reduced net loss reported in Q3 due to diminished costs.
This vital restructuring effort has not been without its casualties, as it led to a number of staff redundancies. Yet, according to Scout, these measures were indispensable for the organization to morph into a more streamlined and efficient business. Johan Jönsson, speaking on behalf of Scout, expressed confidence that the culmination of this initiative places the company on more solid ground, aiming for long-term profitability.
“We are continuing our path to become a profitable company and to create shareholder value,” Jönsson remarks. “We have achieved many milestones but remain dedicated to improving efficiency and maintaining a focused and engaged organization.”
The forward momentum isn’t just internal. Jönsson also highlighted growing interest from new partners and increased engagement from existing ones, fuelling a positive outlook for 2024. The past year also saw an adaptation and growth of Scout’s B2C operations, timed to capitalize on significant sports events such as the Euro and Copa America tournaments in the middle of the year.
In a gesture of appreciation, Jönsson offered thanks to all partners, shareholders, and employees for their unwavering support and confidence in the company’s direction.
Over the past twelve months, leading up to December 31, 2023, the provider’s total revenue escalated by 21.1% year-on-year, reaching an impressive SEK31.0m. It was indeed a year of contrast for Scout, with B2B revenues surging by 80.7% to SEK25.3m, contrastingly, B2C revenues experienced a significant dip of 50.9%, resulting in SEK5.7m.
Despite the downward trend in B2C revenue, Scout remains optimistic about this segment’s profitability potential, providing necessary controls are implemented. The process of reigniting this sector is expected to commence in the first quarter of 2024.
Financial health is further reflected in the overall reduction in operating expenses for the year 2023, which were down 42.4% to SEK56.5m. Coupled with a reported SEK25.9m in financial income, the pre-tax loss showed improvement, shrinking from SEK64.4m in 2022 to SEK41.1m. With no tax payment in 2023, net loss remained at SEK64.4m, stable compared to the previous year.
Additionally, the company observed an enhancement in EBITDA for 2023 as it moved from a negative SEK55.6m to a lesser loss of SEK25.4m.
Quarterly figures reveal a story of resilience and adaptation. Revenue in the last quarter rose by 8.8% to SEK8.7m. B2B continued its ascension with a 47.1% increase to SEK7.5m while B2C sales slid further by 58.6% to SEK1.2m. Even with operating costs nearly halved from SEK23.1m to SEK12.3m, Scout incurred an additional SEK1.4m in financial expenses. This led to a pre-tax loss of SEK5.0m, widening marginally from SEK4.3m in the same quarter of 2022.
With no tax obligations for Q4, the net loss for that period mirrored the pre-tax figure of SEK5.0m, which again, was slightly higher than the previous year’s SEK4.3m. Yet, there was a positive note as adjusted EBITDA loss improved significantly, from SEK15.1m to SEK3.6m.
In summary, Scout’s strategic metamorphosis and recalibration of operations in 2023 have set the stage for what it anticipates will be a breakthrough toward sustained profitability and enhanced shareholder value in the future.
