DraftKings Reports 50% Increase In Net Losses Through September '19
DraftKings' net losses "grew significantly over the prior year" through the first nine months of '19, according to documents cited by Greg Ryan of the BOSTON BUSINESS JOURNAL. The Boston-based betting business yesterday revealed that it lost $114M through Sept. 30, a more than 50% increase from the same period in '18. During the first nine months of '19, the company generated $192M in revenue. The financial results were "made public for the first time in a proxy statement" filed yesterday by Diamond Eagle Acquisition, the special purpose acquisition firm that is "combining with DraftKings and another gambling tech firm, SBTech, in order to take both companies public." Because the filing's figures "only run through September, they fail to fully capture a major source of revenue for DraftKings: football season." In '18, the company brought in over 40% of its "annual revenue in the final three months of the year." DraftKings Dir of Global Public Affairs James Chisholm said the company is "well-positioned to achieve profitability." He also pointed to two "new product offerings related to sports betting and online gaming," as well as "expansion into new markets, as likely drivers of future profitability." Chisholm added that DraftKings' profitability going forward "depends in part on how many consumers nationwide have access to all of its offerings" (BIZJOURNALS.com, 1/6).