DraftKings revenue up 24% for Q2

by Administrator

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.”