- Stock value up 11% as Q3 revenues increase 98% YoY
- DraftKings’ original full-year revenues were estimated to hit US$500m-US$540m
- Surge in quarterly gains attributed to return of US major leagues
DraftKings has seen its stock value grow by 11 per cent after the US-based sportsbook’s projected revenues for 2020 were revised up to as much as US$560 million on the back of a strong third-quarter performance.
According to earlier forecasts, the company’s full-year revenues were estimated between US$500 million and US$540 million. Revenue is now expected to reach much higher after Q3 saw income grow 98 per cent year-on-year (YoY) by 30th September to hit US$133 million.
Overall, that represents a pro forma YoY revenue growth of between 25 per cent and 30 per cent for the year. DraftKings is also expected to see its returns increase by 45 per cent to between US$750 million and US$850 million next year, according to its 2021 guidance report.
DraftKings attributed its recent surge to the return of live sport following widespread coronavirus lockdowns. The National Basketball Association (NBA), the National Hockey League (NHL), Major League Baseball (MLB), and the National Football League (NFL) were all active during Q3.
The company has also been boosted by the expansion of legal sports betting in multiple US states over the past year. Furthermore, DraftKings agreed several high-profile partnerships, including US broadcasters Turner and ESPN, as well as deals with MLB franchise the Chicago Cubs and golf’s PGA Tour.
In September, the company also sold a stake to retired NBA icon Michael Jordon, who has signed up as a special adviser to the sports betting and fantasy sports company.
Jason Robins, DraftKings’ co-founder and chief executive, said that the company also surpassed one million “unique monthly payers”, marking a YoY increase of 64 per cent, and demonstrates “the effectiveness of our data-driven sales and marketing approach”.
As it stands, DraftKings serves more than 50 operators across more than 15 regulated US and global markets.