DraftKings

Q2 beats; 2022 EBITDA upgrade primarily driven by cost efficiencies

  • Sectors : Gaming
  • Companies : DraftKings

Ratings and price correct at time of issue.

  • DraftKings

    Closing Price: 1636c

  • RATING 23/03/21

  • PREVIOUS RATING N/A

DAVY VIEW

DraftKings’ Q2 performance is better than expected at both the revenue and EBITDA line. The beat is driven by, at least in part, a better ratio of revenue to sales & marketing expense. As such, DraftKings is the latest operator to point towards a more rational US operating environment in recent months. Its full-year guidance implies that it will re-invest this better Q2 profit out-turn in the more attractive Q3 customer acquisition window. The mid-point of its revised EBITDA range suggests we will likely increase our expected 2022 EBITDA loss from -$878m to c.-$840m, reflecting additional cost efficiencies (+$40m).

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Aug 5 2022, 15:35 IST/BST

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