DraftKings revenue up 57 per cent in Q3

DraftKings has reported that its third-quarter revenue increased to $790m.

US.- DraftKings has reported financial results for the quarter ended September 30. The company has reported revenue of $790m, up 57 per cent compared to the same period last year. 

The company reported a net loss of $283.1m, but this is an improvement on Q3 2022, when the company reported a net loss of $450.5m.

Monthly unique players (MUPs) increased 40 per cent to 2.3 million. This, the operator says, reflects strong unique player retention and acquisition across sportsbook and igaming, as well as the expansion of its sportsbook into new jurisdictions.

Average revenue per MUP was 14 per cent higher at $114. DraftKings put this down to structural sportsbook hold rate and improved promotional reinvestment for sportsbook and igaming.

DraftKings reported adjusted EBITDA of negative $153.4m, down from positive $72.9m in Q2. On the other hand, it achieved an improvement on Q3 2022’s negative figure of $264.2m.

Following the launch of its Kentucky sportsbook in September, DraftKings is live in 22 US states with mobile sports betting and has launched its igaming product in five states. The operator’s sports betting and igaming offerings are also live in Ontario, Canada.

Jason Park, DraftKings’ CFO, commented: “DraftKings continues to acquire customers in an efficient manner, sustain customer engagement, improve its sportsbook structural hold and promotional reinvestment for sportsbook and iGaming, and demonstrate fixed cost discipline.

“As a result of our outstanding performance in the third quarter, we are raising the midpoint of our fiscal year 2023 revenue guidance to $3.695bn from $3.5bn and improving the midpoint of our fiscal year 2023 adjusted EBITDA guidance to ($105m) from ($205m). We are poised for a rapid increase in adjusted EBITDA as we anticipate strong revenue growth coupled with a scaled fixed cost structure will continue. 

“These trends provide for a long runway of margin improvement. Our fiscal year 2024 guidance at the midpoints of $4.65bn in revenue and positive $400m of adjusted EBITDA implies incremental year-over-year revenue growth of almost $1bn and an increase in adjusted EBITDA of more than $500m.”