Robins: ‘Biggest challenge is not to mess up’
Robins: ‘Biggest challenge is not to mess up’DraftKings profit projection, Genius’ vision thing, Endeavor’s OpenBet boost + More.
Climb in the back with your head in the clouds and you're gone. Progressing nicelyCEO Jason Robins suggests DraftKings will press home No. 1 advantage. Above us only sky: Speaking during the company’s investor event, Robins put the case for why he believed DraftKings was now the number one sports-betting and iCasino operator in the US, with the “only limit our imaginations”.
Progressive era: The latest innovation off the production line is what DraftKings call ‘progressive parlays’, a multiple parlay picks offering, which, Robins said, was another example of the company being able to “control our own destiny.”
Economics 101: Robins and CFO Jason Park put the case for how the state-by-state economics were producing a virtuous circle of lower customer acquisition costs, higher hold rates and increased profit from existing customer cohorts.
Points mean prizes: Noting DraftKings has “obviously” been gaining market share, Robins said there had been a 1,000 basis point improvement within the last year. “Our playbook is getting better and better,” added Park. ”Put simply, more recent states have citizens who are geared up and ready to go when their state finally launches online sports betting.”
We’re in the money: Asked about DraftKings’ plans for the growing cash pile, which Park said would be north of $1.2bn at the end of this year – with more being added “for the foreseeable future” – he hinted the company felt it right to “explore other adjacencies outside of OSB and iCasino”.
** SPONSOR’S MESSAGE ** EveryMatrix delivers iGaming software, solutions, content and services for casino, sports betting, payments, and affiliate/agent management to 300+ global Tier-1 operators and newer brands. The platform is modular, scalable, and compliant, allowing operators to choose the optimal solution depending on their needs. EveryMatrix empowers clients to unleash bold ideas and deliver outstanding player experiences in regulated markets. NotebookPrivate chancer: Australian-based slots manufacturer Ainsworth said going private was one option being considered by a strategic review that was revealed on Monday in the Australian Financial Review. The shares rose 13% on the day as the article speculated a sale could also be considered, with 50% shareholder Novomatic the likely contender. By the numbersIndiana: Statewide GGR was down 9% YoY to $220m with OSB GGR down by 3.6% to $45.2m on handle that also fell 3.7% to $430m. Steve Bittenbender from GDCG suggested on X the sports-betting decline was related to the recent opening of the Kentucky market. Maryland: OSB revenue after promo deductions came in at $38.7m, up 80% YoY, on handle that rose 9% to $483m. FanDuel continued to lead with 52% vs DraftKings on 31%. Iowa: Statewide GGR was down 2.7% to $160m in October but sports betting increased 26% to $24.2m on handle that rose 7% to $255m. What we’re readingMade you look: The New Yorker takes on the Sphere. ICYMIESPN Bet launches today. Here’s what’s being said. And here. And here. Revolutionary roadVision on: Genius Sports was keen to stress the importance of its BetVision product, which CEO Mark Locke claimed “revolutionizes the way sports bettors engage with the NFL”. The product launched in late September with Caesars, Fanatics and BetRivers.
Steppin’ out: The sports data and technology provider once again upped its FY guidance, raising its revenue prediction to $412m and adj. EBITDA to $53m. This after Q3 revenues came in marginally ahead of consensus at $102m, up 29% YoY, with adj. EBITDA coming in at $18m. Locke noted the company would “step into” free cash flow territory in H2 this year. Product+More: Recent earnings commentary has touched on the subject of streaming the NFL. Richard Schwartz, CEO at Rush Street, which as noted has deployed BetVision, said it was still “very early days” with the product. “But certainly, we think the ability to offer streaming of content is helpful, especially if you can offer some bets alongside that experience,” he added.
Earnings in briefEndeavor: The Ari Emanuel media and entertainment giant gave some detail on its sports data and betting technology segment in last week’s Q3 earnings, which showed revenue up 167% to $125m, bolstered by the acquisition last year of OpenBet. Segment adj. EBITDA was up fivefold to $19.8m.
SJM: The continued progress of the Macau market was displayed in the Grand Lisboa operator’s revenues rising more than fivefold to HK$5.4bn ($692m), while the company registered an adj. EBITDA profit of HK$566m vs a loss of HK$968m in Q322. Galaxy Gaming: Departing CEO Todd Cravens said that, despite some challenges in Q3, 2023 is “shaping up to be a record”. Revenue for the quarter rose 3% to $6.1m but adj. EBITDA fell 36% to $1.5m. Sharplink Gaming: The fan activation and fantasy provider saw revenues rise 153% to $3.3m, with net losses coming in at $2.9m, up nearly a third on the same period last year. Analyst takesJefferies on Entain: Looking ahead to BetMGM’s investor presentation on Dec. 4, the team suggested that from Q1 next year the JV will be hoping to lean into the product enhancements promised by parent Entain’s Angstrom acquisition as it hopes to boost OSB market share.
And CBRE: Also downgrading Entain was the team at CBRE, who said the “confluence of headwinds” from H223 would persist throughout 2024, with the issues in the UK and Australia being “more impactful and lasting longer than initially expected”.
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An +More Media publication. For sponsorship inquiries email scott@andmore.media. |
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