DraftKings losses widen further in Q1 despite revenue growth
DraftKings and SBTech both saw revenue grow in the first quarter of 2020, but combined losses widened to $74.0m in the pair’s last full quarter before their merger closed.
The businesses officially merged in April, trading on the Nasdaq exchange under the DraftKings name, after agreeing the combination in December 2019.
DraftKings and SBTech generated combined revenue of $113.5m for the three months to 31 March, up from $90.0m in Q1 2019.
Of this sum, $88.5m came from the legacy DraftKings business, a 30.0% year-on-year increase. This came predominantly from its online betting, gaming and daily fantasy sports operations, which accounted for $83.7m of the total, up 28.8%. The remaining $4.8m was generated from other sources including retail sports betting.