DraftKings reports revenue of $466m and net loss of $217m for Q2

By Louis Thompsett

DraftKings has reported revenue of $466m for Q2, an increase of 57% compared to $298m during the same period in 2021.  

The company’s B2C segment also grew to $455m, a 68% increase year-on-year. This comes amid something the operator claims was a less favourable sports calendar in Q2 2022 compared to Q2 2021.  

Owing to its growth, DraftKings says it has outperformed the midpoints of its Q2 guidance ranges. As such, the operator will increase the midpoint of its fiscal year 2022 revenue guidance by $15m, to a range of $2.08bn to $2.18bn. 

Furthermore, the operator will raise the midpoint of its adjusted EBITDA by $60m. Its loss range will be lowered to between $765m and $835m, compared to a loss guide of between $810m to $910m before the announcement of its Q2 report.

However, the company recorded a net loss of $217.1m this quarter. Although this is not as high a loss as in Q1 2021, when losses topped $305.5m, the company's net loss was greater in H1 2022 than in H1 2021. H1 2022 saw the operator record a net loss of $684.8m, compared to a loss of $651.9m in H1 2021. 

DraftKings Co-Founder, CEO and Chairman of the Board Jason Robins said: “DraftKings had an excellent second quarter, exceeding expectations for revenue and adjusted EBITDA. 

“Due to our ongoing investments in core online gaming technologies, we are in a strong position from a competitive perspective as we approach the beginning of the NFL season” Jason Robins, DraftKings Co-Founder, CEO and Chairman

“Customer engagement remains strong and we continue to see no perceivable impact from broader macroeconomic pressures. Due to our ongoing investments in core online gaming technologies, we are in a strong position from a competitive perspective as we approach the beginning of the NFL season.” 

Monthly unique players (MUPS) at DraftKings increased to 1.5 million new paying customers, a 30% increase in the number of MUPs recorded for Q2 2021.  

Revenue per unique player also rose 30% year-on-year to $103. DraftKings attributes this increase to stronger customer engagement, a continued mix blend of DraftKings’ Sportsbook and iGaming products, and reduced promotional intensity.  

The quarterly report also detailed DraftKings’ expansion into Ontario, Canada. The operator is now live with mobile sports betting in 17 US states, covering 36% of the American population.  

The operator is live in five states with iGaming, which represents 11% of the US.

Although DraftKings' revenue figures are impressive, being one of the leading operators in the US, its net losses remain high. Far higher than a competitor in the form of Rush Street, which reported a net loss of $28.3m for Q2. Penn National's losses were nowhere near as high for Q2 either. 

The operator's investments in technology and other business areas cannot go on forever. Surely a time must come when DraftKings' shareholders must stop investing – if only to make the operator self-sustaining. Its plan to do this, and when it looks to start turning a profit, remains unknown.

Biggest online rival FanDuel, owned by Flutter Entertainment, is yet to report its Q2 figures.

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