DraftKings Financials Up in Second Quarter

American betting company DraftKings announced this week that its financial position improved in the second quarter of 2024, with revenues during the period spiking 26% to $1.04 billion.

Key financial indicators for the period ending June 30th, 2024 were:

• Revenues of $1.04 billion, up 26% from last year
• Net income of $63.8 million
• Adjusted EBITDA up to $128 million, compared to $73 million last year
• A net loss of $32.4 million, an improvement of $53 million from the $69 million loss reported last year
• Monthly unique players were up 50% to 3.1 million
• Average revenue per MUP was down 15% to $117, largely due to promotional investments

During the trading update, the company revealed that its Board of Directors have authorized $1 billion in stock share repurchases. The company also revised its 2024 revenue guidance upwards to between $5 billion and $5.25 billion, which would signify growth of between 38% and 43%.

DraftKings is the largest online betting service in the United States, where it provides sportsbetting services for 25 states and in Washington DC. It also provides online casino gaming services in five states.

Regarding his company's performance, DraftKings CEO Jason Robins said: "We very efficiently acquired many more new customers than we expected and saw continued healthy existing customer engagement in the second quarter. We will continue to capitalize on the healthy customer acquisition environment for the rest of 2024 which positions us to achieve $900 million to $1.0 billion of Adjusted EBITDA in 2025. Additionally, we plan to implement a gaming tax surcharge in high tax states that have multiple mobile sports betting operators on January 1, 2025 which could drive Adjusted EBITDA upside on an annual basis."