DraftKings

Good Q2 and guidance infer attractive growth

  • Sectors : Gaming
  • Companies : DraftKings

Ratings and price correct at time of issue.

  • DraftKings

    Closing Price: 4536c

  • RATING 23/03/21

  • PREVIOUS RATING N/A

DAVY VIEW

DraftKings released its Q2 results with a solid underlying performance in iCasino (+23%) and strong growth (+45%) in sports, helped by operator-friendly results. Revenue was +37% year-on-year (yoy), c.7% above recent consensus, and aEBITDA more than doubled to $301m, c.20% above consensus (VA). The full year revenue guidance range is unchanged, but it has pointed to the high end of this range. It has also retained its EBITDA guidance range despite factoring in a state launch and additional tax, which will be well received. DraftKing’s guidance for the year implies revenue growth of >32% and a yoy EBITDA increase of c.$670m. Prospective underlying growth remains very healthy. Management also alluded to confidence in its long-term 30% EBITDA margin expectation, which should encourage investors regarding the medium-term profit growth trajectory.

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Aug 7 2025, 07:01 IST/BST

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