DraftKings revenue up 88 per cent in Q2

DraftKings has reported that its second-quarter revenue increased to $874.9m.

US.- DraftKings has reported financial results for the quarter ended June 30. The company has reported revenue of $874.9m, up 87.7 per cent compared to the same period last year. Adjusted EBITDA turned positive at $72.97m, in comparison to a loss of $118.1m for the same period last year.

The loss from operations improved to $69m, a 77 per cent change year-over-year. Net loss dropped by 64.4 per cent to $77.3m. The operator ended Q2 with $1.1bn of cash and cash equivalents, an increase of $26m compared to the end of Q1.

Jason Robins, DraftKings’ chief executive officer and co-founder, said: “DraftKings produced outstanding results for the second quarter of 2023. We grew revenue at an impressive year-over-year rate, captured additional GGR share in a cost-effective manner, and maintained our focus on operational efficiency.”

“The positive Adjusted EBITDA that we generated in the second quarter exceeded our guidance, and we are well on our way to achieving positive Adjusted EBITDA again in the fourth quarter of 2023 and for the fiscal year 2024 and beyond,” he added.

During the quarter, monthly unique payers (MUPs) increased to 2.1 million, representing a jump of 44 per cent compared to the same period in 2022. The company said the increase reflects strong unique payer retention and acquisition across DraftKings’ sportsbook and igaming products, as well as its expansion into new jurisdictions.

Average Revenue per MUP (ARPMUP) came in at $137, representing a 33 per cent rise. This was primarily attributed to improvement in the company’s structural sportsbook hold rate and reduced promotional intensity.

Following the positive results, the business has raised its 2023 revenue guidance to a range of $3.46bn to $3.54bn, up from a previously announced $3.14bn to $3.24bn. The updated range equates to year-over-year growth of 54 to 58 per cent.