DraftKings 2Q Revenue Falls, Hurt by Promotions

Dow Jones08-07

DraftKings' second-quarter revenue fell, as sports bettors won their wagers and the company offered promotions to attract new customers.

The online sports betting company on Thursday posted a loss of $67.6 million, or 14 cents a share, for the second quarter, compared with a profit of $157.9 million, or 30 cents a share, a year earlier. Analysts polled by FactSet expected earnings of 2 cents a share.

The loss was driven by lower revenue and an increase in costs, including those tied to sales and marketing.

Adjusted earnings per share were 9 cents, compared with estimates of 17 cents a share according to analysts polled by FactSet.

Revenue fell 5% to $1.44 billion, missing analyst estimates of $1.51 billion.

The company attributed the decline to customer-friendly sport outcomes and increased investment in promotions to acquire customers for its sportsbook and predictions offerings.

Average revenue per monthly unique payer decreased about 13%, to $132. Monthly unique payers increased 9% to 3.6 million.

For the full year, the company continues to guide for revenue of $6.5 billion to $6.9 billion.

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