DraftKings loss widens amid coronavirus disruption of pro sports

Revenue has picked up as sports have restarted

DraftKings Inc's. loss widened in the three months through June as the COVID-19 pandemic put most sports on hold, limiting betting.

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The Boston-based sports-betting app posted a second-quarter loss of $161.4 million, or 55 cents per share, as revenue jumped 24% from a year ago to $70.9 million. Wall Street analysts surveyed by Refinitiv were expecting an adjusted loss of 19 cents per share on revenue of $66.4 million.

Adjusted revenue, which smooths out the impact of its combination with SBTech (Global) Limited and Diamond Eagle Acquisition Corp., would have been $75 million if the deal had been completed on Jan. 1, 2020.

TickerSecurityLastChangeChange %
DKNGDRAFTKINGS53.19+2.62+5.18%

“As a technology-first organization, we will continue to focus on bringing new and innovative products to market that strengthen our engagement with customers and maintain our competitive differentiation,” CEO Jason Robins said in a statement.

Revenue has seen sequential improvement since some sporting events restarted, and those gains accelerated after the return of the major U.S. sports beginning in July.

DraftKings finished June with $1.2 billion cash and no debt after a follow-on equity offering bolstered its balance sheet by $800 million.

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Looking ahead, DraftKings sees fiscal year 2020 pro forma revenue of $500 million to $540 million, which would equate to growth of 22% to 37% year-over-year.

DraftKings went public on April 24, 2020, and its shares have since gained 106%.