All Eyes On DraftKings Annual Results
DraftKings are due to announce their fourth quarter and full yearly results Friday 18th February with huge speculation on the numbers from Chief Executive and Co-Founder Jason Robins of the sports betting US company.
It has been an eventful year for the company that was launched in 2011 to offer originally fantasy sports to US players, DraftKings most notably tried to acquire UK online gambling firm Entain for a reported £16.5 billion but ultimately failed in late October as Entain had a complicated sports betting partnership with MGM Resorts in the form of BetMGM. That partnership and MGM themselves blocked any possibility of DraftKings being successful.
But DraftKings have been more successful with acquisitions of The Golden Nugget Online Gaming brand for $1.6 billion in August last year and before that buying Vegas Sports Information Network for an undisclosed fee.
But now Friday the 18th February all eyes will be on the sports betting giant with the annual results.
Analyst’s predict that with the company will report Q4 revenues of around $439 million which would represent a rise of 36.4% on the same period in 2020. Annual revenues are predicted to hit $1.3 billion.
However revenues for the company that now operates in 15 states representing 29% of the US population is not the challenge, what is the issue is cost to grow the business to profit margin. It is estimated that to continue to grow the player base it has cost DraftKings $1.2 billion for the nine months of this year.
Any expectation of a profit this year from the company are ambitious at best, what DraftKings needs is more growth in terms of states signing up to sports betting, one analyst believes that the company needs a spread of 60% reach of US population for DraftKings to hit the profit margin.
All will be revealed tomorrow and there will be a lot of interested investors waiting for their Co-Founder to announce when profits will start to come in.
