DraftKings reports higher revenue for start of football season

Finance News

Draftkings said it now expects revenue for the year to be in the range of $2.16 billion to $2.19 billion, up from its previous call for between $2.08 billion and $2.18 billion.

The sports betting company also changed its forecast for adjusted earnings before interest, taxes, depreciation, and amortization to point to a narrower loss of between $800 million and $780 million, compared with its prior call for a loss of between $835 million and $765 million.

The company reported a net loss of about $450 million for the third quarter, compared with a net loss of $545 million in the same period last year.

“Our results in the third quarter significantly exceeded the expectations that we provided on our second quarter earnings conference call,” added Jason Park, DraftKings’ Chief Financial Officer. “We are increasing the midpoint of our fiscal year 2022 revenue guidance by $45 million and improving the midpoint of our fiscal year 2022 Adjusted EBITDA guidance by $10 million, which is a meaningful improvement given our prior fiscal year 2022 Adjusted EBITDA guidance did not include our launch in Kansas on September 1, 2022, or fourth quarter investments ahead of our expected launches in Maryland and Ohio, pending licensure and regulatory approvals. We are also introducing 2023 guidance for revenue and Adjusted EBITDA which reflects our continued balance between driving attractive revenue growth and meaningfully improving our Adjusted EBITDA.”