American online sports wagering innovator DraftKings Incorporated has reportedly released its financial results for the first nine months of 2019 showing that its net debt for the period had increased by over 50% year-on-year to hit just over $114.08 million.
According to a Monday report from the Boston Business Journal newspaper, the firm behind the DraftKings daily fantasy sports service also saw its nine-month operational losses grow by 53% year-on-year to surpass $115.41 million with its general and administrative costs rising by 150% to reach $78.18 million.
The Boston-headquartered pioneer is reportedly soon set to go public with a listing on America’s Nasdaq bourse after entering into an agreement that is to involve investor Diamond Eagle Acquisition Corporation combining the company’s business with that of omni-channel online casino and sportsbetting technologies developer SBTech. This development is purportedly due to be completed before the end of March and will see the current Chief Executive Officer for DraftKings Incorporated, Jason Robins, exert control over about 90% of the newly-enlarged enterprise’s capital stock.
The Boston Business Journal reported that the news was not all bad for DraftKings Incorporated as the firm’s overall revenues for the initial nine months of 2019 swelled by 44% year-on-year to $199.99 million while its income tax expenses dropped by an identical percentage to $35 million.
The newspaper furthermore reported that the most recent financials from DraftKings Incorporated do not fully capture the state of the company’s overall business as some 40% of its annual revenues are usually earned over the course of the fourth quarter. It explained that this is due to the popularity American football wagering although the firm still went on to record a year-end deficit for 2018 of about $76 million.
Despite this confusing picture, Jamie Chisholm from DraftKings Incorporated reportedly told the newspaper that his company is ‘well-positioned to achieve profitability when total contribution profit exceeds the fixed costs of our business’ and that it is sure to additionally benefit as even more American states legalize online sportsbetting.
Written by Adam Morgan.
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