shares of summon kings (DKNG 9.78%) rose 9.8% on Friday, as the leader in daily fantasy sports and online gambling announced its pre-market second-quarter results and raised its 2022 financial guidance.
DraftKings revenue rose 57% year over year to $466 million in the second quarter. The company’s Ontario entry into the Canadian online sports betting and casino markets in May helped fuel its growth. The recent acquisition of Golden Nugget Online Gaming also added to the profit.
DraftKings gambling platforms continue to feel attractive to people despite the challenges of inflation and other economic pressures. Average monthly business-to-consumer customers increased by 30% to 1.5 million. These customers also placed larger bets, increasing average revenue per payee by 30% to $103.
“Customer engagement remains strong and we see no impact from broader macroeconomic pressures,” CEO Jason Robbins said in a press release.
Better yet, DraftKings’ losses are looming. It generated a net loss of $217 million, or $0.50 per share, compared to a loss of $305 million, or $0.76 per share, in the year-ago quarter. It was much better than Wall Street expected. Analysts had forecast a loss of $0.75 per share.
Management also raised its full-year guidance, raising the midpoint of its revenue guidance to $2.130 billion from $2.115 billion. This would correspond to annual growth of 64%. It lost about $800 million to $60 million in its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) estimate.
“Due to our ongoing investments in core online gaming technologies, we are in a strong competitive position as we near the start of the NFL season,” said Robbins. “We remain well capitalized, poised to enter new markets and believe in our ability to compete and win with customers.”
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.