DraftKings has announced its first quarter performance metrics after reporting a 52.7% year-on-year increase in revenue to $1.18bn (£936.2m).€1.09 billion).
The company’s CEO and co-founder Jason Robins praised the “excellent” numbers, which led to an increase in the gaming operator’s full-year forecast for revenue and adjusted EBITDA. For the first three months of the year, revenue was $405 million higher than the $769.7 million that DraftKings generated in the same period last year.
Robins identified several growth accelerators, including the sportsbook’s expansion into new markets, increased customer loyalty, as well as an increase in the company’s structural sportsbook retention rate and better reinvestment in advertising efforts.
Other recent highlights for DraftKings include the launch of new sports betting projects in North Carolina and Vermont and the move to the Tar Heel State in conjunction with NASCAR. With the recent expansion, DraftKings is now operating in 27 states in the USA as well as Ontario, Canada.
The company also signed a multi-year deal with Barstool Sports.
“DraftKings’ performance in the first quarter of 2024 was outstanding, reflecting healthy revenue growth and a scaled fixed cost structure that positions us to drive rapid improvement in Adjusted EBITDA,” Robins stated.
“Looking forward, we remain committed to maximizing shareholder value through continued innovation, operational excellence and disciplined capital allocation.”
More numbers behind DraftKings’ growth
A key driver of the company’s growth in the first quarter was the increase in the number of customers trading on DraftKing’s sports betting or gaming platforms.
Average monthly unique players (MUPs) increased 23% to 3.4 million over the same period in 2023.
With each MUP, average sales also increased. In the first quarter the average was $114, another 25% increase compared to last year.
With further expansion and new markets comes higher operating costs.
Cost of sales increased by 36.1% to $710.1 million, while sales and marketing expenses fell by 12.4% to $340.7 million.
The end result was an operating loss of $138.8 million for the first quarter, a significant improvement compared to last year’s loss of $389.8 million. A further $4.4 million in non-operating costs resulted in a pre-tax loss of $143.2 million, again stable on the loss of £395.7 million the previous year.
Adjusted EBITDA turned significantly from a loss of $221.6 million to a profit of $22.4 million.
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