AUS
NZ
UK
CA
USA
IND
Source: TZIDO SUN, Shutterstock
Summary
- DraftKings (NASDAQ:DKNG) scrips returned 265 per cent in the last one year.
- It has the largest online sports betting presence across the US.
- The company raised its long-term profit target.
Stock price of digital sports entertainment and gaming company DraftKings Inc. (NASDAQ:DKNG) were up nearly 10 per cent on at 11:04 AM ET on Wednesday, March 10. The scrips were trading at US$68 a pop.
The stock rose by 2.81 per cent to US$62.2 on Tuesday after it raised its EBITDA target during an online investor day event Tuesday.
In the last one-year, the stock grew by a massive 265 per cent amid a spike in interest on online sports betting during the pandemic-led lockdowns.
DraftKing’s Financial Forecast
DraftKings’ executive team made a presentation to the investors wherein it highlighted its accomplishments and projections based on available data.
Major highlights of the virtual investor day summit, according to company release, that triggered the stock movement northwards are:
a. Gross revenue forecast of US$5 to US$7.3 billion in North American OSB (Online Sports Betting) and iGaming at maturity.
b. Dominance in market share (30 per cent in OSB & 19 per cent in iGaming where it is live) and presence in 12 states across the U.S.
c. The OSB giant increased its the long term adjusted EBITDA estimate to US$1.7 from US$1.2 billion.
Image Source: Kalkine media
For the three months ended (Q4) December 31, 2020 DraftKings revenue stood at US$322 million, an increase of 146 per cent during the same period of 2019. The period was marked by increased customer engagement and retention quarter over quarter.
The way forward
DraftKings have said that though it has the intention to emerge as a global entity, they currently would focus on the North American markets.
On March 4, DraftKings entered into a first of its kind agreement with UFC®, which will make it the latter’s first ever official sports book and daily fantasy partner in the United States and Canada.
