DraftKings revenue up 27.1% in H1 as net loss widens
Sports betting and daily fantasy giant DraftKings reported a 27.1% year-on-year rise in revenue for the first half of 2020, though the business’ net loss widened to $230.1m (£175.4m/€194.6m) for the period.
Revenue for the six months to 30 June came to $159.5m, of which $139.1m came from online gaming (comprising sports betting, online casino and daily fantasy sports), up 14.6%.
Gaming software, comprising the legacy SBTech business, contributed a further $15.0m, while DraftKings recorded a further $5.4m in other revenue. While the operator did not explain this ‘other’ segment, it classed it as B2C revenue suggesting it may be a contribution from retail betting.
DraftKings said B2C operations had been performing strongly prior to March 11, with revenue up over 60% before the novel coronavirus (Covid-19) crisis shut down land-based gambling venues and suspended sporting events.
“The outbreak of Covid-19 had an immediate and significant adverse impact on this performance, though we expect our business and results of operations to improve as traditional sports seasons and sporting events resume,” DraftKings noted.
The bulk of first half revenue was generated in the US, which accounted for $147.4m – or 92.4% – of the total, a 20.5% improvement on H1 2019 figures. International markets’ contribution rose significantly year-on-year, albeit from a low base, to $12.1m.