Earnings+More - DraftKings turns a profit
DraftKings turns a profitDebut profit at DraftKings, Bally’s relaunch hopes, Red Rock, AGS, Accel and FL earnings in brief +MoreGood morning. On the Weekender agenda:
Do you remember the first time? Stand outDraftKings’ shares enjoy a post-trading rise as the company hits its debut profit. Ta-da! DraftKings’ much anticipated first-ever profitable quarter has duly arrived after the company posted Q2 adj. EBITDA of $73m on revenues that rose 88% to $855m. As is its custom, it also raised guidance for the FY with adj. EBITDA losses expected to be better by $100m at between $190m and $220m.
Make your own luck: The company said the move to profitability had been strong retention and acquisition metrics and expansion into new territories. While the increase in cost of sales broadly kept pace with revenues, up 70% to $467m, sales and marketing expense has clearly been pegged back, up only 8% YoY to $199m.
Mr Brightside: Wells Fargo said they were impressed with the Q2 numbers. “Cohort profitability, declining promos and higher structural hold are causing EBITDA to inject more sustainably than we envisioned,” the team wrote.
Diary date: DraftKings will hold its analyst call later today at 8.30am ET. ** SPONSOR’S MESSAGE ** What would you do with $100k in cash? Are you game…? ICYMIOllie Ring’s Esprouts reported yesterday on the news that not only has Twitch added two more sites to its banned list of gambling-related content, it also appears to have banned sponsorship of “skins gambling”.
You can also read more on Twitch’s move in Cody Luongo’s Sharpr this week and in yesterday’s edition of Compliance+More. In one of two episodes this week, Jon and Fintan from The Gambling Files spoke to Northridge’s Melanie Ellis about the UK’s plans for financial risk checks.
In LosIngresos+Mas this week, we report on the controversies that have emerged in Brazil following President Lula’s signing of the Provisional Measure, which gave the green light to sports betting, albeit at an enhanced tax rate of 18%. Bally’s online relaunchBally’s remains focused on iCasino as land-based motors along. Under new management: Bally’s news Kambi/White Hat-powered backend solution is set to be live in three states before the end of the summer with at least seven states operational by year-end.
UK online was the driver behind the growth in international interactive revenues, up 12% YoY and helping push segment revenues up 5.6% to $248m. He suggested the UK business was taking market share.
A’s to Z: Bally’s casinos and resorts business grew revenue by 11% to $333m, helping to push overall revenues up nearly 10% to $606, while adj. EBITDA rose 9% to $961m.
Earnings in briefRed Rock Resorts: Consecutive record-breaking Q2s left Red Rock Resorts with a tough act to follow as it reported a drop in quarterly revenue year-on-year, with hopes for the remainder of 2023 now pinned on the Thanksgiving opening of the Durango. Revenues fell 1.5% to $416m in Q223 YoY, while adj. EBITDA was also down 7.2% to $175.3m.
AGS: CEO David Lopez said it was his company’s R&D expertise, product strategy and operational excellence that is “hands down better than anything I’ve ever seen” that lay behind the company’s 17% leap in revenues to $89.8m. Adj. EBITDA rose 15% to $39.6m.
Accel: The “continued growth in the face of economic uncertainty demonstrates the strength” of the hyper-local distributed gaming model, according to CEO Andrew Rubenstein. Revenues rose 28% to $293m while adj. EBITDA was up 9% to $46.6m
FL Entertainment: Betclic’s listed parent said new cross-selling features and strategic partnerships helped it gain share in all key markets. Revenues from its digital wagering activities were up 23.5% at €489m, with adj. EBITDA rising 26% to €130m. OSB was up 21% at €389m and online casino revenues rose 40% to €65m. Konami: The ongoing revival in Macau and across Asia helped gaming and systems revenue for FY24 rise 30% YoY to JPY73bn ($512m), while profit rose 17% to JPY13.4bn. The company said markets across North America and Australia have “regained” their pre-pandemic energy. ** SPONSOR’S MESSAGE ** BettingJobs is the global leading recruitment solutions provider to the iGaming, Sports Betting and Lotteries sectors. Boasting a 20-year track record supporting the iGaming industry, and with a team of experts and world class knowledge, it’s no surprise BettingJobs is experiencing rapid growth with outstanding results. Does your company have plans to expand teams to cope with strong growth and demand? Contact BettingJobs.com today where their dedicated team members will help you find exactly what you are looking for. MGM analyst takesAnalysts suggest the bull case for MGM remains in place. Big mo: Take a slightly misfiring regionals out of the mix and MGM retains its momentum, suggested the team at Jefferies. The share price reaction – down over 5% in after-hours trading – suggests “expectations were elevated”, said Truist, but they also believed the commentary from the company was positive.
The shares weekIf only all responses to profit warnings were like XLMedia’s. Oversized returns: Raising eyebrows in the last week has been the performance of the London-listed affiliate. Since effectively issuing a profit warning on July 27, when it said adj. EBITDA for H1 was down 39% to £6.5m, the shares have soared nearly 25%. 👀 XLMedia get a boost M&A notebookCatena Media has sold its UK and Australian online sports-betting affiliate brands Squawka and GG.co.uk as well as its Australian-based subsidiary for €6m to UK-based sports betting affiliate Moneta Communications.
** SPONSOR’S MESSAGE ** Venture capital firm Yolo Investments manages in excess of €600m in capital across 80 exciting fintech, gaming and blockchain companies. The Yolo Investments' Gaming fund, regulated by the Guernsey Financial Services Commission, has taken positions in fast-growth suppliers and operators, including Dabble and Enteractive. Yolo Investments (yolo.io) wants to hear from readers of this newsletter. Get in touch with your pitch, or for a chat about innovative products which can plug into our investment ecosystem. NewslinesPaysafe will provide its eCash solution to The Mill Adventure’s partner casinos and online players in Germany. Calendar
An +More Media publication. For sponsorship inquiries email scott@andmore.media. |
Older messages
Hornbuckle: ‘We can grab share back’
Thursday, August 3, 2023
MGM's defense, Rush Street pushes on, 888Africa M&A, Caesars analyst takes +More
Caesars bets on Palace boost
Wednesday, August 2, 2023
Caesars' tough comps, IGT headway, Betr pivot, Golden Entertainment and Melco briefs +More
The end of the road for Fox Bet
Monday, July 31, 2023
Fox Bet split, iCasino market share examined, the week ahead, Lottomatica call recall, analyst takes, startup focus – STX +More
PointsBet: We can do more with less
Friday, July 28, 2023
PointsBet's new focus, Boyd's mixed bag, Churchill Downs' Derby boost, analyst takes on BetMGM +More
BetMGM hits profitability in Q2
Wednesday, July 26, 2023
BetMGM's milestone achievement, Kambi's parting shot, Raketech earnings in brief +More
You Might Also Like
Launch Your Own Crypto Token in Eve Frontiers; A new blockchain phone from Solana Mobile
Friday, September 20, 2024
PlayToEarn Newsletter #245 - Your weekly web3 gaming news
Reader, last chance, get your free AI training…
Friday, September 20, 2024
Hey Reader, I wanted to remind you that our free AI training is still available, but only for a little longer! I've emailed you a few times because I don't want you to miss out on this quality
🎙️ Find That Pod #280
Friday, September 20, 2024
Let's discover some awesome podcasts together.
Two Charged in $230M Bitcoin Theft Linked to Genesis Bankruptcy
Friday, September 20, 2024
Plus Silvergate Executives Claim Chokepoint 2.0 Forced Their Closure
Blogging is Making a MAJOR Comeback
Friday, September 20, 2024
Today, I've got 2 different videos related to the Google's most recent August core update. First, I just released this video yesterday: Blogging is Making a Major Comeback! I share several
Holiday 2024: In-Store Sales Drop, eCommerce Stays Strong [Crew Review]
Friday, September 20, 2024
Email is one of the easiest ways to grow your off-Amazon sales and support your on-Amazon sales. With Omnisend, setting up your campaigns couldn't be easier. Make email marketing easy. Hey Reader,
53,000 visitors a month for THIS?! 🚀
Friday, September 20, 2024
You're overthinking it!
Updated features for LinkedIn pages
Friday, September 20, 2024
Today's Guide to the Marketing Jungle from Social Media Examiner... Presented by social-media-marketing-world-logo It's Library Card Sign Up Month, Reader! It's the best card you'll
Influence Weekly #355 - TikTok's E-commerce Expansion: 12 Industry Experts Weigh In On Opportunities And Strategies
Friday, September 20, 2024
Beast Games Contestants Sue MrBeast, Amazon Over Alleged Sexual Harassment, Mistreatment
Weekly Dose of Optimism #112
Friday, September 20, 2024
Three Mile Island, Obesity Goop, Metformin, Antigravity, The Prize, Porphyrion ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏