Mobile Sports Betting in Maine Goes Live
November 9, 2023
Monday Night Football Same Game Parlay – Broncos at Bills
November 10, 2023
Halfway through the quarter, DraftKings overtook FanDuel, which had been leading the country in market share for online gambling for the previous few years. According to Eilers & Krejcik Gaming, in August, DraftKings’ combined national market share in iGaming and online sports betting (OSB) reached 32.5 percent, placing it just ahead of FanDuel (29.6 percent). In terms of gross gaming revenue (GGR) trends, DraftKings reported in its Q3 presentation that during the previous five quarters, the firm has grown its market share by more than 10 percent. DraftKings’ national market share for OSB and iGaming combined remained close to 20 percent in the second quarter of 2022.
DraftKings exceeded analysts’ projections of $702.3 million with revenue of $789.5 million for the three months that concluded on September 30. In comparison to the same quarter in 2022, it represents a 57% increase. Going ahead, DraftKings plans to add roughly $100 million to the midpoint of its Adjusted EBITDA projection for the full year 2023. Earnings before interest, taxes, depreciation, and amortization, or Adjusted EBITDA, is now expected to be between negative-$95 million and negative-$115 million this year, according to the business. During its August results call, DraftKings provided Adjusted EBITDA forecast for the entire year, stating that it will be between negative-$190 million and negative-$220 million.
Truist Securities analyst Barry Jonas referred to DraftKings as “one of the best, if not the best,” growth stories in the industry in response to the company’s quarterly results. Truist is adamant that DraftKings will prevail in the industry over the long haul.
The elements contributing to the raised projection, according to DraftKings CFO Jason Park, were effective client acquisition, good user retention, enhanced sportsbook hold, and promotional reinvestment. According to him, promotional reinvestment as a proportion of GGR keeps becoming better. Park was happy with baseball-related consumer trends, which contributed to the majority of MLB clients smoothly transitioning at the beginning of the football season.
Since DraftKings became public, the company has closely examined one part of its income statement called “Sales and Marketing” expenses, which is associated with responsible spending. DraftKings reported $313 million in expenses for the quarter, a modest decrease from the $322 million spent in the same period last year. It was one of the first quarters in which DraftKings saw a drop in the category year over year. However, a few investors said on social media on Thursday night that the prices are still high for a business that hasn’t turned a profit for the entire year.
During DraftKings’ Investor Day presentation on November 14, Robins pledged to provide further information regarding the company’s efforts to achieve profitability at the state level.
In Thursday’s after-hours trading last week, DraftKings increased by more than 7% to $31 per share. On Friday morning, DraftKings continued to rise, hitting a session high of $32.49, up almost 14% from the day before. The business is very close to $34.49, its 52-week high. At $73 per share, its all-time high, which was attained in March 2021, DraftKings is still well below that price. On Friday, the day the business launched sports betting in Maine, DraftKings held its earnings call.
