DraftKings revenue up 24% for Q2

By Owain Flanders

DraftKings saw revenue of $70.9m for the second quarter of 2020, a rise of 24% year-on-year.

Adjusted EBITDA saw a loss of $57.5m for the same period, a further drop from the loss of $21.1m experienced in 2019.

Despite this, the operator said it has ended the second quarter of 2020 with no debt on its balance sheet and more than $1.2bn in cash.

This is mainly attributed to the successful follow-on equity offering and exercise of public warrants following the company’s call for redemption. This saw DraftKings add over $800m to its balance sheet.

Despite major sports leagues being cancelled because of COVID-19, the operator said its investment in fantasy sports and league partnerships saw increased engagement when sports returned.

Overall for H1, the operator's revenue was $159.5m, a rise of 27% year-on-year.

DraftKings announced it will acquire supplier SBTech in December, in a deal financed by Diamond Eagle Acquisition Corporation. The deal is worth an estimated $3.3bn in market capitalisation.

On a pro forma basis, the operator said its revenue would have been $75m for Q2 this year had the merger been completed on January 1 2019, in comparison to $83m for the same period in 2019.

Commenting on his company’s performance, Jason Robins, DraftKings co-founder, CEO and chairman of the board, said: “We believe that the best product will ultimately win with the American consumer.

“As a technology first organisation, we will continue to focus on bringing new and innovative products to market that strengthen our engagement with customers and maintain our competitive differentiation.”

TAGS:

Share This Post



NEWS SPONSOR

More News

AffiliateCon, the learning hub for gaming affiliates, will broadcast its next Virtually Live event today at 9am BST, so head over to affiliatecon.com where...





Pole position

Certainly no stranger to the processing and manipulation of data, Sportradar is currently exploring such avenues in the world of Formula One, with in-race betting set to be the subject of...