The group reported a positive EBITDA of $181.3 million, up from the previous year’s loss of $151 million. This is the first time the operator has posted positive EBITDA since becoming listed in April 2020.
However, this is some way below Draftkings’ full-year adjusted EBITDA guidance of $240 million to $280 million, announced during its third quarter results.
The 2024 guidance was dropped due to a bad run of NFL results in October, as it had previously been set at a range of $460 million to $540 million.
Draftkings CFO Alan Ellingson, in a statement, called 2024 a “milestone year” for the group as it achieved its first year of positive adjusted earnings.
Draftkings’ fourth quarter
Turning to Q4, Draftkings reported a revenue of £1.39 billion during the period, up 13% on the previous year’s $1.23 billion. This revenue uptick was driven by “continued healthy customer engagement, efficient acquisition of new customers, the expansion of the sportsbook product offering into new jurisdictions, higher structural sportsbook hold percentage and the impact of the acquisition of Jackpocket,” the operator said. However, revenues in Q4 were partially offset by customer-friendly outcomes throughout the NFL season.
The company saw monthly unique players increase to 4.8 million in Q4, up 36% year-on-year, driven by acquisition and retention across its sportsbook and igaming products.
Average revenue per players was $97, down 16% year-on-year. Draftkings said the decrease was due to lower player revenue from Jackpocket customers when compared to its existing offerings. Customer-friendly sportsbook outcomes also impacted player returns.
Apparently, the day of the Tyson-Paul boxing match on 15 November was the company’s highest customer acquisition day in its history.
Draftkings also posted a daily record for sportsbook handle of $436 million, attributed to Super Bowl Sunday.
In Q4 period, adjusted EBITDA was $89.5 million, down 40% on the previous year’s $151 million, thanks largely to unfavourable NFL results.
Robins hails hold percentage increase
The group’s CEO and co-founder Jason Robins noted that the company “continued to efficiently acquire and engage customers, expand structural sportsbook hold percentage and optimise promotional reinvestment in fiscal year 2024.
“There are also many potential vectors that could even further accelerate our growth. Our structural sportsbook hold percentage is continuing to increase and the long-term ceiling could prove higher than we expect.”
Robins added that the online gaming legalisation in the US “appears inevitable” and that Draftkings was at the “epicentre” of a massive trend.
H1 2025 EBITDA forecast increased
Ellingson reaffirmed the EBITDA guidance for 2025 results would between $900 million and $1.0 billion. He also slightly increased the H1 2025 guidance to $6.45 billion, from $6.4 billion.
In a February letter to investors, Ellingson noted that the increase in EBITDA guidance was “primarily due” to expected returns from its investments in live betting, following the acquisition of Simplebet.
Draftkings bought in-play betting company Simplebet last year. That deal marked the company’s second major purchase of 2024, as it had also purchased digital lottery company Jackpocket in May.
Draftkings did not include year-to-date sports outcomes, such as the recent Super Bowl, in its guidance for 2025.
The company is also excluding Missouri regulating sports betting in 2025 from this forecast. This would likely impact earnings during the start-up phase. The state is aiming to launch regulated sports betting in June.
