DraftKings Incorporated issues encouraging 2022 forecast
The price of individual shares in DraftKings Incorporated reportedly rallied late last week to reach as high as $14.25 following news that the American sportsbetting firm had significantly improved its upcoming annual revenue and earnings predictions.
According to a Friday report from the Bloomberg news service, the Nasdaq-listed operator detailed that it expects to chalk up sales of between $1.93 billion and $2.03 billion for the whole of 2022, which is higher than an earlier forecast of $1.85 billion to $2 billion. The source explained that the mid-point of this range implies that the prominent company expects to finish the current twelve-month period having recorded aggregated year-on-year growth of around 56%.
DraftKings Incorporated also reportedly disclosed that it anticipates documenting an adjusted loss before interest, tax, depreciation and amortization for 2022 of as much as $840 million in 2022, which would be some 9% better than a prior top estimate of about $925 million. Licensed to provide online sportsbetting services to punters in 17 American states including Michigan, Illinois and New Jersey, the firm has purportedly grown its revenues while being forced to spend millions on a range of advertising and incentive programs.
Bloomberg reported that revised outlook did not include DraftKings Incorporated’s recently-completed takeover of iGaming rival Golden Nugget Online Gaming Incorporated or its planned second-quarter launch into the Canadian province of Ontario. However, the operator purportedly divulged that it expects that these will lead to an additional $130 million to $150 million in 2022 revenues while costing it as much as $70 million in negative earnings before interest, tax, depreciation and amortization.
Jason Robins (pictured) serves as the Chief Executive Officer for Boston-headquartered DraftKings Incorporated and he used an official Friday filing to note that his company had booked first-quarter revenues of $417 million, which topped an earlier market forecast of $414.9 million. The boss moreover asserted that his firm has yet to see ‘any impact from inflationary pressures on customer demand’ as it matched an earlier estimate of two million unique monthly players with average revenues per user stronger than expected.
Read a statement from Robins…
“DraftKings Incorporated delivered significant growth across our key revenue and performance metrics. We are not seeing any impact from inflationary pressures on customer demand and we continue to improve the user experience by adding breadth and depth to our daily fantasy sports, mobile sportsbetting and iGaming products. We are also improving our efficiency in acquiring and retaining customers and have a strong pipeline of new jurisdictions to enter.”