DraftKings To Focus On Product Innovation

DraftKings does not expect an impact on its long-term plans because of COVID-19, as the firm based in Boston , Massachusetts, lauds the return of professional sports in the US as losses grow.

Adding more than $800 m to the balance sheet and finishing the second quarter with more than $1.2bn in cash and no debt, sales fell from $57.3 m to $70.9 m year-on-year for the three-month period up to June 30 , 2020.

DraftKings said it had a loss of $161.4 m, or 55 cents a share, during the period, as opposed to the loss of $28.1 m, or 15 cents a share, posted a year ago in the same period.

In the first six months of the year, sales rose by 27 percent to $159.4 million (2019: $125.4 million) year-on-year, with a loss of $230.1 million, or 97 cents per share, as opposed to a loss of $57.6 million, or 31 cents per share, in 2019.

On a pro forma basis, including the effect of the business combination of the company with SBTech and Diamond Eagle Acquisition as if it had been completed on January 1 , 2019, revenue would have been $75 m in Q2, compared to $83 m a year earlier in the same period.

As sporting activities started to resume, the company announced increased engagement with its sport-based product offerings, which in the second quarter led to a sequential monthly sales growth. It is said that this positive momentum has increased with the return of MLB, the NBA, WNBA, the NHL and MLS.

In addition , the organization is also implementing a pro forma sales outlook of $500 m to $540 m for fiscal year 2020, which is equivalent to annual growth of 22 percent to 37 percent in the second half of 2020.

This assumes, however, that the professional sports calendar remains as envisioned at present, and that DraftKings operates in the states where it presently exists.

Jason Robins, DraftKings co-founder, CEO and chairman of the board said: “We believe that the best product will ultimately win with the American consumer. As a technology first organisation, we will continue to focus on bringing new and innovative products to market that strengthen our engagement with customers and maintain our competitive differentiation.”