Upgrading its long-term targets

  • Sectors : Gaming
  • Companies : DraftKings

Ratings and price correct at time of issue.

  • DraftKings

    Closing Price: 2164c

  • RATING 23/03/21



DraftKings’ investor event, which was rich in detail, will take some time to digest. Its upgraded targets are a reiteration of its prior long-term profit framework, with material unit economics detail provided to help validate its EBITDA opportunity. Based on better-than-expected spend per capita data to date, it has increased its total addressable market forecasts (to $35bn including Canada). This, alongside the contribution from its soon to complete GNOG acquisition, results in an upgrade to its long-term revenue (+24%) and profit forecasts. DraftKings now expects long-term EBITDA to reach >$2bn (also upgraded by +24%) from core operations. As expected, there was no change to its 2022 guidance.

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Mar 3 2022, 16:45 GMT