{"id":1815,"date":"2021-11-05T09:50:46","date_gmt":"2021-11-05T16:50:46","guid":{"rendered":"https:\/\/wagers.com\/staging\/4285\/?p=1815"},"modified":"2021-11-05T09:50:46","modified_gmt":"2021-11-05T16:50:46","slug":"draftkings-hit-by-nfl-results","status":"publish","type":"post","link":"https:\/\/wagers.com\/staging\/4285\/news\/draftkings-hit-by-nfl-results\/","title":{"rendered":"DraftKings hit by NFL results"},"content":{"rendered":"<h3>DraftKings Q3s<\/h3>\n<h4>The top line<\/h4>\n<ul>\n<li>Revenue of $213m, up 60% YoY but net losses climbed 37.7% to minus $545m while adj. EBITDA losses rose 59% to $313.6m. Net losses for the nine month stood at $1.2bn.<\/li>\n<li>B2C revenue came in at $189.1m and B2B at $23.7m (down 20% YoY).<\/li>\n<li>Guidance for FY21 was narrowed to between $1.24-1.28bn and includes $25m of negative revenue impact from customer-friendly sporting results.<\/li>\n<li>The implied guidance for Q4 is $437m.<\/li>\n<li>Guidance for 2022 issued with revenue forecast at between $1.7-1.9bn.<\/li>\n<li>DraftKings now live with OSB in 15 states and in five with igaming.<\/li>\n<\/ul>\n<p><strong>The Fall:<\/strong> DraftKings\u2019 share price fell over 5% in early trading after it released what one analyst immediately suggested were \u201clower than expected\u201d revenues. Indeed, street consensus expected revenues of ~$236.9m, the company said the shortfall was due to unfavorable NFL results.<\/p>\n<p><strong>Backing away: <\/strong>Looking at the ending of talks with Entain, Robins said that global expansion \u201cis one of the pillars for long-term growth\u201d. He suggested that it was only because of a leak to the press that the talks had to go public due to UK takeover rules; and in a backhanded compliment to Entain, suggested it was still interested even though it has a \u201clower growth trajectory\u201d. \u201cI think we will continue to look at things out there,\u201d he added.<\/p>\n<p><strong>Deep pockets:<\/strong> Comments elsewhere this week have suggested some of the heat might have been taken out of the competitive environment since the start of the NFL season and Robins somewhat concurred. \u201cThere has been a little bit of a pullback,\u201d he suggested. Note, DraftKings marketing expenses in Q3 rose to $303.6m, up 49%. But he added that the experience in new states such as Arizona, where the company said customer acquisition costs had been \u201ctremendous\u201d, showed that high spending elsewhere could be a benefit.<\/p>\n<blockquote><p><em>\u201cWe just follow the data; we spend when we see the money coming in, that is really our approach,\u201d Robins said. \u201cYes, there is more competition but it is also growing the market faster.\u201d<\/em><\/p><\/blockquote>\n<p><strong>Loss leader: <\/strong>Asked whether he was worried about some competitors suggesting that sports-betting could simply be a loss-leader for an igaming operation, Robins was dismissive.<\/p>\n<blockquote><p><em>\u201cIt doesn\u2019t appear to be a strategy that makes sense,\u201d Robins suggested. \u201cI think sports-betting on its own is going to be a very profitable business for us. And most states don\u2019t have igaming right now. So we really have to feel we can run the sports-betting vertical at a profit.\u201d<\/em><\/p><\/blockquote>\n<p><strong>Walk, don\u2019t walk: <\/strong>Robins wouldn\u2019t be drawn on the rumors surrounding New York and whether DraftKings will be among the winning consortia but he did suggest that if awarded a license the company would achieve long-term profitability. \u201cThere are a lot of levers we can pull,\u201d he said \u201cI don\u2019t think anyone would want to run unprofitably long-term in any state.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>DraftKings Q3s The top line Revenue of $213m, up 60% YoY but net losses climbed 37.7% to minus $545m while adj. EBITDA losses rose 59% to $313.6m. Net losses for the nine month stood at $1.2bn. B2C revenue came in at $189.1m and B2B at $23.7m (down 20% YoY). Guidance for FY21 was narrowed to [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[324],"tags":[720,12],"class_list":["post-1815","post","type-post","status-publish","format-standard","hentry","category-news","tag-drftkings","tag-nfl"],"_links":{"self":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/1815","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/comments?post=1815"}],"version-history":[{"count":1,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/1815\/revisions"}],"predecessor-version":[{"id":1817,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/1815\/revisions\/1817"}],"wp:attachment":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/media?parent=1815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/categories?post=1815"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/tags?post=1815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}