DAVY VIEW

Draftkings (DK) Q1 results indicated a good underlying performance in sports, with softer iCasino trends. As widely anticipated, sports results impacted the quarter. FY25 revenue has been reduced by 2% and aEBITDA by 11%, primarily owing to the highest rate of top seeds winning in the NCAA tournament in history. DK notes that it is well positioned for the evolving macro environment and highlights the historic resilience of online gaming in weaker macro periods. It notes that its current metrics, such as deposits, engagement time, frequency and bet size, are strong and consistent with its forecasted trends.