DraftKings Posts Wider-Than-Expected Quarterly Loss. The Stock Slides.

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Gabby Jones/Bloomberg

DraftKings
,
the online sports betting company, was falling Friday after reporting a third-quarter loss wider than analysts’ expectations and revenue that missed forecasts.

DraftKings

(ticker: DKNG) posted a quarterly loss of $1.35 a share on revenue of $213 million.

Analysts expected DraftKings to report a third-quarter loss of 98 cents a share on revenue of $236.9 million. Revenue a year earlier was $133 million.

Operating expenses in the quarter rose to $759 million from $481 million. Sales and marketing costs rose to $304 million from $203 million.

The company said average revenue per monthly unique player was $47 in the third quarter, a 38% increase from the same period in 2020.

The company boosted the midpoint of its revenue guidance for fiscal 2021.

DraftKings said it expects fiscal-year revenue of $1.24 billion to $1.28 billion, vs. previous guidance of $1.21 billion to $1.29 billion. Analysts have been calling for fiscal-year revenue of $1.29 billion.

For fiscal 2022, DraftKings said it expects revenue of $1.7 billion to $1.9 billion.

Rival

Penn National

(PENN) reported Thursday that third-quarter earnings fell almost 40% from a year earlier, coming in well below analysts’ expectations. The company blamed Hurricane Ida for slowing momentum into the second half of August and into September.

Last last month, DraftKings dropped its plan to acquire British gambling giant Entain in a $22.5 billion deal.

DraftKings shares fell 3.3% to $43.22. The stock has fallen 4% year to date.

Write to Joe Woelfel at joseph.woelfel@barrons.com

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