Earnings+More - Earnings Extra: DraftKings shares dip
Earnings Extra: DraftKings shares dipDraftKings Q3 prompts share price fall, Super Group issues trading update +MoreGood afternoon. In this earnings extra:
DraftKings disappointsRevenues rose 136% YoY to $501.9m but adj. EBITDA losses of $264.2m were only trimmed by 15.4% as the path to profitability continues to be elusive. Bad reaction: DraftKings saw its share price suffer a mini-collapse in pre-market trading despite Q3 earnings showing B2C revenues rising 161% to $493m. But the forward guidance for Q422 and FY23 was deemed “disappointing” by analysts at Wells Fargo. 😱At pixel time DraftKings shares were down over 17%
Guard rails: The midpoint of the forward guidance for 2023 EBITDA is $525m which is worse than forecast, albeit with the midpoint of 2023 revenue guidance of between $2.8bn-$3bn being bang on consensus.
Don’t dream it’s over: He noted the company has “discontinued” putting additional cash into the California ballot effort. The (doomed) effort cost the company $16.5m in Q3. “We’re ready to pivot on a dime if we get a pleasant surprise, although that’s certainly not what we’re expecting,” he said. ** SPONSOR’S MESSAGE** GiG is a leading gaming platform and sportsbook provider for online and land-based operators with digital aspirations. We deliver a full end-to-end solution through our award-winning iGaming and sportsbook solutions. Built for regulated markets and a top-class customer experience, GiG is pioneering the multi-platform era. If you are looking to expand your operations into new, profitable markets, our strategy is the solution. Find out more at sales@gig.com. Super Group’s to-do listRevenues fell 1.5% YoY to €316m and adj. EBITDA dropped 15% to €54m as the Betway and Spin parent suffered from global macro impacts. Different strokes: Asked about the drop in revenues and profits, particularly in iCasino, CEO Neal Menashe said the usually resilient vertical suffered “in different ways in different markets.” “We address this by having more customers and giving them games they like with lower bet sizes,” he added.
When I say jump: The company acquired a majority stake in the UK-focused online casino operator Jumpman Gaming at the start of September which it said contributed €7m of net revenue in September and positive EBITDA for Q3.
Earnings in briefCentury: Revenues fell 4% to $112.6m while adj. EBITDA drops by 15% to $28.1m. Recall, in August, Century agreed to buy the Rocky Gap casino from Golden Entertainment and VICI for $260m. NewslinesGreenwood Gaming has pushed back the opening of the Pennsylvania satellite casino Parx Shippensburg to early next year due to construction delays, according to reports. USAbility: The sports-betting and iGaming consultancy has appointed former William Hill US CEO Joe Asher to its advisory board and is also a shareholder. What we’re waiting forCalendar
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