DraftKings revenue increases in Q3
Revenue was up 4 per cent year-over-year.
US.- DraftKings has announced its third quarter results. For the three months ended September 30, the company reported revenue of $1.14bn, up 4 per cent year-over-year. The sportsbook handle increased 17 per cent. The results come a day after ESPN announced a partnership with DraftKings after ending its arrangement with Penn Entertainment for ESPN Bet.
The company said the revenue increase in Q3 was driven “by continued healthy customer engagement, efficient acquisition of new customers, and higher structural Sportsbook hold percentage, partially offset by customer-friendly sport outcomes.”
According to the report, Monthly Unique Payers (MUPs) increased 2 per cent to 3.6 million. Excluding Jackpocket, MUPs increased 6 per cent from the same period in 2024. Average revenue per MUP (ARPMUP) increased to $106, up 3 per cent year-over-year.
The company said it expects fiscal year 2025 revenue of $5.9bn to $6.1bn, which would mean growth of 24 to 28 per cent. It expects adjusted EBITDA of $450m to $550m, including anticipated financial impacts from launching mobile sports betting in Missouri later this year.
The company’s guidance also includes the expected launch of DraftKings Predictions in the coming months, pending licensure.
Jason Robins, DraftKings’ chief executive officer and co-founder, said: “This is the most bullish I have ever felt about our future. Underlying growth in the business is accelerating and we are excited to launch DraftKings Predictions in the coming months, which we view as a significant incremental opportunity.”
Alan Ellingson, DraftKings’ chief financial officer, added: “With handle growth accelerating and parlay handle mix continuing to increase, we are excited about the trajectory of our Free Cash Flow. We continue to focus on maximizing shareholder returns and are pleased to announce that our board authorized an increase in our share repurchase program from $1.0bn to $2.0bn.”
The company recently named Gregory W. Wendt to its board of directors as an independent director.
