DraftKings revealed Friday its financial results for Q4 and 2020, with a strong revenue growth reported due to an increased interest in sports betting.
Deals, Customer Acquisition, and a Busier Sporting Schedule
DraftKings presented today its financial results for 2020 and Q4, with its yearly revenue up 49% compared to 2019. The strong rise in the number of players and increased interest for daily fantasy and sports wagering boosted the operator’s figures for the last quarter of 2020. The sports betting segment nearly doubled DraftKings’ revenue in Q4, while costs proportionally increased.
Year on year, Q4 revenue jumped by 146.1% to $322.2 million. According to DraftKings CEO Jason Robins, this growth can be explained by a busy sporting schedule from October to December and stronger marketing techniques, engaging and acquiring a larger audience.
The leading iGaming and sports betting operator saw its number of MUPs (Monthly Unique Players) rise by 43.9% to 1.5 million, as the average revenue per MUP (ARPMUM) went up 54.8% to $65, Robins stated.
With the deployment of its betting offering in Tennessee at the end of last year, DraftKings noted that its revenue in the state was the highest it ever generated just after launch, with more than $300 million in revenue for November and December. The fourth quarter also brought various new deals for DraftKings, including an agreement with the Mashantucket Pequot Tribal Nation and Foxwoods Resorts Casino to enter Connecticut’s regulated sports wagering market. Additionally, the group unveiled many collaborations with broadcasters and teams, such as Turner Sports, Detroit Pistons, the Philadelphia Eagles, the Nashville Predators, as well as pro golf player Bryson DeChambeau.
DraftKings Raises 2021 Revenue Guidance
DraftKings’ net loss reached $266.4 million for Q4, but its high results in the last three months of 2020 prompted the operator to raise its 2021 revenue guidance from $750 million to $850 million to a range of $900 million to $1 billion.
On a like-for-like basis, DraftKings’ 2020 revenue was up 90% year on year, at $614.5 million, of which $517.6 million were generated from the operator’s B2C iGaming and sports betting streams. Most of its revenue came from the US, totaling $544.5 million, while its B2B revenue came from other markets across the globe, for a total of $70.1 million.
The company declared that it had started 2021 quite successfully. It reported that, following the launch of remote registration in Iowa on January 1, the business saw the number of players who signed-up via mobile pass the total number of in-person registration for 2020 on February 5.