DraftKings Inc (DKNG)

[John-Knee]

DraftKings Raises Full-Year Revenue Prospects as User Numbers Grow Amid Move Into 'Very Attractive' NFTs
2021-08-06 08:48:41 AM ET (MT Newswires)
   
   
08:48 AM EDT, 08/06/2021 (MT Newswires) -- DraftKings (DKNG) Friday raised its revenue outlook for the full year after reporting second-quarter results that were ahead of analysts' expectations, bolstered by the gaming company's growth in new markets and products.

The company posted an adjusted loss of $0.26 per share for the three months ended June 30, narrower than the Capital IQ consensus for a loss of $0.52 a share. On a GAAP basis, the loss was $0.76 a share compared with a loss of $1.80 a year earlier.

Revenue climbed to $297.6 million from $70.9 million previously, ahead of the Street's view for $247.2 million.

"DraftKings had a particularly strong second quarter of 2021, maintaining our impressive financial performance while also advancing into new areas, such as media and NFTs," Chief Executive Jason Robins said in a statement. "We believe these expansion opportunities will enable us to further grow our customer base and generate additional revenues through cross-selling to our existing players."

Last month, DraftKings said it would roll out a marketplace for digital collectables including non-fungible tokens, or NFTs, from Autograph, a platform that uses athletes and celebrities to create the items.

Sports NFTs are a "very attractive category" of digital collectables, and DraftKings has an option to obtain an ownership stake in Autograph, it said in an investor presentation Friday.

DraftKings lifted its guidance for full-year revenue to $1.21 billion to $1.29 billion from a prior range of $1.05 billion to $1.15 billion, driven by "continued user retention, engagement and acquisition due to the effectiveness of our marketing spend," the company said. The Capital IQ view is for $1.18 billion.

Monthly unique payers in the company's business-to-consumer segment rose 281% in the second quarter, and DraftKings said its online sports betting is active in 12 states making up a quarter of the US population. Average revenue per user rise 26% year-on-year to $80 in the quarter as the sports schedule returned to normal from COVID-19 cancellations made a year before.