DraftKings posts 98% rise in revenue for Q3

By Iqbal Johal

DraftKings has seen its revenue for Q3 2020 rise by 98% year-on-year, leading the company to raise its guidance for the full-year.

The US-based fantasy and sports betting operator and supplier posted revenue of $133m, which is a 42% increase from 2019 on a pro forma basis, taking into consideration its merger with SBTech, which was completed in April.

The unprecedented factor of all four major US sports leagues – NFL, NBA, MLB and NHL - taking place during the same quarter, led to DraftKings seeing a 64% yearly rise in average monthly unique players, up to 1m.

GAAP sales and marketing expense increased to $203m for the quarter ending 30 September, while DraftKings expanded its mobile sports betting offering to 10 states, following its launch in Tennessee last month.

As a result, the company has raised its 2020 fiscal year revenue guidance from $500m to $540m, to a range of $540m to $560m, on a pro forma basis. Its 2021 full-year revenue guidance has been introduced at a range between $750m and $850m.

DraftKings CEO Jason Robins said: “The resumption of major sports such as the NBA, MLB and the NHL in the third quarter, as well as the start of the NFL season, generated tremendous customer engagement,”

“Our product offerings and scalable platform provide a distinctive and personalised experience for customers across the ten states where we operate mobile sports betting today, and we look forward to entering additional jurisdictions at the earliest opportunity.”

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