US betting brand sees revenue leap 57% YoY in Q2.
- Net loss hits US$217m, down from US$306m in year prior
- MUPs increase to 1.5m
- 2022 revenue guidance upgraded to between US$2.08bn and $2.18bn
US gambling giant DraftKings saw its revenue jump 57 per cent year-over-year (YoY) to US$466 million for the three months ended 30th June 2022.
The biggest contributor was the company’s B2B segment, which grew 68 per cent YoY to US$455 million, despite a ‘less favourable sports calendar’ for the period compared to the second quarter of 2021.
DraftKings’ net loss for Q2 was US$217 million, compared to US$306 million for the year prior. The betting firm’s net loss for the first six months of 2022 is US$685 million, up from US$652 million for the first half of last year.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) came to US$118 million, exceeding the US$95 million for the same period in 2021.
DraftKings’s monthly unique payers (MUPs) increased to 1.5 million average monthly unique paying B2C customers, representing a YoY rise of 30 per cent. The company said this reflected strong unique payer retention and acquisition across DraftKings’ sportsbook and iGaming products, as well as the expansion of its Sportsbook and iGaming products into new jurisdictions. This was partially offset by a decline in daily fantasy sports MUPs.
Average revenue per MUP (ARPMUP) stood at US$103 in Q2, marking a 30 per cent increase. DraftKings credited strong customer engagement, a continued mix shift into its sportsbook and iGaming products, in addition to reduced promotional intensity compared to the same period in 2021.
The results have seen DraftKings raise its fiscal year 2022 revenue guidance to a range of US$2.08 billion to $2.18 billion from the range of $2.055 billion to $2.175 billion in Q1. This updated 2022 revenue guidance range equates to YoY growth of 60 per cent to 68 per cent.
DraftKings is also improving its fiscal year 2022 adjusted EBITDA guidance to a loss of between US$765 million and US$835 million. It had previously been expecting a loss of between US$810 million and US$910 million.
The company is currently live with mobile sports betting in 17 states that collectively represent approximately 36 per cent of the US population. DraftKings is also live with iGaming in five states, representing approximately 11 per cent of the country’s population. The firm launched its sportsbook and iGaming products in Ontario, Canada on 18th May.
“DraftKings had an excellent second quarter, exceeding expectations for revenue and Adjusted EBITDA,” said Jason Robins, DraftKings’ co-founder, chief executive and chairman of the board.
“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.
“We remain well capitalised, ready to enter new markets as they become live, and confident in our ability to compete and win with customers.”
https://www.sportspromedia.com/news/draftkings-q2-2022-financial-results-earnings-revenue-loss-us-sports-betting/