Draftkings Inc (NASDAQ:DKNG) posted narrower full-year losses, but shares in the sports betting firm were hit as the fourth-quarter figure fell short of analysts' expectations.
Per share losses for 2023 came in at US$1.73, compared to US$3.16 in 2022, Draftkings reported on Thursday.
For the fourth quarter, losses per share were US$0.10 against US$0.53 a year earlier but worse than analysts’ expected US$0.06.
Revenue for the three months to December of $1.23 billion surpassed expectations, rising by 44%.
According to Draftkings, which rivals the likes of Entain's BetMGM and Flutter Entertainment's FanDuel, customer engagement remained healthy over the end of the year, with revenue per monthly unique payers increasing by 37%.
Adjusted pre-tax earnings of US$151 million were recorded in the final quarter, against a US$49.9 million loss last time around.
Chief executive Jason Robins said 2024 should bring Draftkings’ first adjusted profit, with the firm hiking guidance for the figure from around US$400 million to US$460 million.
“DraftKings ended 2023 with excellent performance across customer acquisition, retention and engagement as well as structural sportsbook hold percentage despite the worst stretch of sport outcomes we have seen as a public company in the fourth quarter,” Robins added.
The result coincided with news that Draftkings had agreed to acquire lottery app Jackpocket through a US$750 million deal.
Shares dipped 3.3% in pre-market trading to US$43.01.