The leading sports betting operator that has a growing presence within the US regulated gambling market, DraftKings, released its latest trading update, outlining details regarding its performance for the first quarter of 2023. Judging by the recent unaudited figures, the company enjoys a stellar start to 2023 with revenue increasing exponentially on a year-over-year basis.
DraftKings’ revenue for the first quarter this year hit $770 million. This result, when compared to the Q1 2022 result of $417 million, showed an increase of 84%. There were multiple factors that contributed to the positive result including a higher hold percentage thanks to product innovation and decreases in promotions in certain states.
A significantly important factor that impacted the first quarter results positively was the efficient acquisition of new clients and retention of existing customers. The company’s recent trading update revealed that its monthly unique players (MUPs) increased to 2.8 million in Q1 2023. That result marked a strong growth of 39% when compared to the corresponding period a year ago, in 2022.
In addition to the growth of MUPs, DraftKings confirmed that the average revenue per MUP increased during the first quarter of this year. Overall, the average revenue per MUP hit $92 in Q1 2023, marking an increase of 35% when compared to Q1 last year. “This increase was primarily due to improvement in the Company’s structural sportsbook hold rate and reduced promotional intensity,” explained DraftKings.
The Company Remains Committed to Further Growth
DraftKings continued to expand its presence in the US throughout the first quarter of this year. In March the company launched its online sportsbook product for customers in Massachusetts. This launch complemented its growth and by now, DraftKings has a presence in 21 US states, offering its mobile sports wagering services. In addition to sports betting, the company is live within the iGaming markets of 5 states, offering its leading services.
“DraftKings’ first quarter performance – 84% year-over-year revenue growth and share gains underpinned by a relentless focus on operational efficiency – demonstrates that this is a company positioned for sustained success.“
Jason Robins, CEO and co-founder of DraftKings
Jason Robins, DraftKings’ CEO and co-founder, acknowledged that the revenue growth reported for the first quarter this year is the result of the efforts of the company’s team in combination with operational efficiencies. He explained that the results reaffirm the company is positioned well for future success. Finally, Robins predicted that DraftKings will continue to grow and deliver long-term value for its shareholders.